CARACAS - Venezuelan President Nicolas Maduro ordered a 20 percent cut in government spending on Tuesday to encounter falling oil prices and a struggling economy.

"I have approved a 20 percent slash on lavish spending, unproductive and unnecessary expenses of the nation to optimize our incomes due to falling oil prices," said Maduro in a televised speech.

He added that this cut won't affect social programs related to education, health and food imports.

Venezuela earns 96 percent of its export revenues from oil. The oil price hit a five-year low this week. On Monday, benchmark Brent crude oil was down 1 percent to $71.51 per barrel.