Venezuelan President Nicolas Maduro approved a notion on Tuesday to cut government expenses by 20 percent amidst a major plunge in oil prices.

"I've approved the reduction of 20 percent in ... unproductive expenses, which do not at all affect the social investment in (government) tasks, big projects, in the social and economic life of the country," Maduro said in a meeting with members of the Cabinet and businessmen.

Maduro said that Venezuela needed external financing to help the nation get through the oil price declines. He says that the OPEC nation has enough funds to cover external debt commitments.

"There is a financial blockade against Venezuela to stop us from accessing the financing we need to counteract the reduction in oil revenues," Maduro said in a speech.

Last week, Venezuela's president appointed a presidential commission to oversee the reduction of public expenses. The commission is also set to review the salaries of all top level government workers, including the president himself.

Maduro says his appointed commission will help increase savings and contribute to sustaining a healthier state and economy.

"Both the government's willingness and ability to service its foreign currency debt is in serious question," Capital Economics said in a note last week about declining oil prices.

"Given that the government has nothing in the way of savings from the oil price boom of the past decade, the loss of oil revenues will wipe out whatever foreign currency that the government has," the note read.

"With the bolivar collapsing in the black market, capital flight is only likely to increase putting even more pressure on the supply of hard currency."

The price of petroleum was $68.08 a barrel compared to an average of $98 a barrel last year.

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