Chavez cuts budget over oil price

President Chavez urged Venezuelans to be "more realistic"

Venezuelan President Hugo Chavez has unveiled a series of measures to offset falling oil revenues that account for about 50% of the national budget.

He proposed to cut the 2009 budget by 6.7% and increase sales taxes.

Mr Chavez also pledged salary cuts for senior public officials, but a 20% rise in the minimum wage.

His announcement came shortly after the government had sent army to take control of the country's key airports and sea ports.

The government says the move - which was rubber-stamped by parliament a week ago - centralises the running of the country's main transport hubs.

Opponents say the move is unconstitutional, accusing Mr Chavez of consolidating power.

Government spending cuts

In a televised address on Saturday, President Chavez said that the revised 2009 budget would be based on oil prices at $40 (