MercoPress. South Atlantic News Agency

Bolivia expects 17% oil tax and royalties revenue drop in 2009

Bolivia is forecasting a 17% fall in its hydrocarbons tax and royalties revenues because of the fall in the international price of gas and oil sold to Argentina and Brazil according to official reports.

Economy minister Luis Arce said the fall in revenue from the Hydrocarbons Tax and royalties will represent 260 million US dollars less for the Treasury. However Arce pointed out that the international financial crisis and drop in commodities prices “will not affect the financial system which is well protected”.

Arce denied private sector estimates of a revenue fall of 49% and insisted that the Bolivian economy “even in a most difficult international situation, will experience significant levels of accumulation”.

”Based on an international average oil barrel price of 51 US dollars, Bolivia will only suffer a relative fall in revenues and this taking into account a very conservative natural gas exports to our neighbours, 20 million cubic meters per day and 4 million to Brazil”.

Arce went further and described “the numbers as less worrying and discouraging if we compare them with the current budget and given the oil and gas prices of last year and in the first quarter of this year”.