Maduro Bypasses Venezuelan Congress and Approves Budget

The clash of constitutional powers in Venezuela deepened following the Supreme Court’s October 11 announcement that allowed President Nicolás Maduro to present the country’s annual budget without going through the opposition-led National Assembly. “No one can go against the Supreme Court; it’s binding!” Maduro exclaimed to a crowd of supporters, as he waved the document and pledged to pour money into social projects. “Long live the people! Long live the civil-military union! Long live the support from the street!”

In the latest institutional struggle, the court said in a statement that it based its decision on “the need to complete the legal formation of the national budget… with the aim of maintaining the state’s functions, guaranteeing fundamental rights and constitutional order.”

The Venezuelan opposition swiftly condemned the decision as unconstitutional and accused the Supreme Court of further crippling the National Assembly’s legislative powers as it pushes for a recall referendum against Maduro.

“Everything this government does is against the Constitution and Venezuelans,” expressed opposition leader Henrique Capriles. “They’re exacerbating the crisis… because they know that the country wants to oust Maduro.”

The court’s decision comes during an economic crisis that has left Venezuela struggling with sinking economic growth, triple-digit inflation, and widespread shortages of food, medicine and other basic goods. Under those circumstances, the Supreme Court’s actions could scare bondholders, including those considering the debt swap offer by state oil company PDVSA, analysts said.

In his speech, Maduro agreed to speak to opponents. “If one day in the years to come they want to sit with me to talk, I am ready to talk,” he said. Yet, he scoffed at the opposition’s efforts toward a recall referendum, exclaiming, “No one can knock down Maduro, especially those oligarchs!” In this regard, the measure perpetuates the problem within Venezuela as Maduro thwarts opposition and maintains his hold on power.