HAVANA, Cuba, (ACN) – Headed by Miguel Diaz-Canel, first secretary of the Central Committee of the Communist Party of Cuba and president of the country, the meeting of the Council of Ministers for March was held to discuss the program that guides the government agenda of the nation, the Presidency reported today on its website.
The government’s program to correct distortions and re-boost the Cuban economy has focused its work on the operational proposal of the foreign exchange market, on the analysis of the closed schemes of self-financing in foreign currency, and on the definition of the schedule for the implementation of the new mechanism of management, control and allocation of foreign currency, informed Mildrey Granadillo de la Torre, first deputy minister of economy and planning.
Miguel Diaz-Canel assured that due to its complexity, the schedule for the implementation of the new mechanism for the management, control and allocation of foreign currency is being specified, and the Resolution that will implement it is under evaluation. She specified that the review of closed foreign currency self-financing schemes approved for the year continues, in sectors such as health, biotechnology, tobacco, tourism, energy, among others.
Granadillo de la Torre indicated that the risks and consequences of the foreign exchange market operational proposal, which envisions the transformation of the management of official exchange rates, are being explored in depth through meetings conducted by the ministry of economy and planning, with the participation of members of the Government’s Economic Group and experts from the National Association of Economists and Accountants of Cuba.
For his part, Joaquin Alonso Vazquez, minister of economy and planning, explained that at the end of February, the economy had maintained slow execution rates, which will be greatly impacted by the implementation of the decisions discussed at the meeting by Granadillo de la Torre. He commented that exports of goods are falling short of what was planned, and among the sectors that are meeting expectations are tobacco, lobster, eel, rum, and biopharmaceutical products.
Likewise, he indicated that the export of medical services is meeting the plan and growing, while tourism and telecommunications are not. Regarding agricultural production, the minister specified that there is a change compared to previous periods; the plan is being met in almost all sectors, although not all are growing, including eggs, which “maintain a level of decline.”
The domestically produced food balance has been growing during this period, but it is still insufficient to meet demand, he clarified.
Referring to inflation rates, Alonso Vazquez stated that, although the inflation curve continues to decline compared to this time last year, prices in February rose by 2 percent.
The highest price increases are in the agricultural market due to the presence of many intermediaries, the Minister stated.
Regarding the business system, Alonso Vazquez pointed out that profits are growing; however, 316 companies are closing with losses, a number that is 69 fewer than in the same period last year.
Amid the economic crisis that has affected social indicators, he reported that 313,201 vulnerable people are currently being protected in Cuba, and 63,756 mothers with three or more children are being cared for, with just over a thousand mothers living in communities undergoing transformation being prioritized.
Manuel Marrero Cruz, a member of the political bureau and prime minister, considered it necessary to delve deeper into the subjective aspects, and to determine, despite the real issues affecting the economy’s performance, what alternatives could be implemented to mitigate the impact on the population and improve the country’s economy. It was decided that the Council of Ministers will require accountability on the progress of the government program’s objectives, specifically objectives two and three, related to increasing and diversifying the country’s external revenues and increasing domestic production, with an emphasis on food.
Other topics discussed at the meeting included the results of the State Budget execution at the end of February, which showed a surplus of 480 million pesos, a result that demonstrates an overshoot of the planned deficit of 13.733 billion pesos, reported Vladimir Regueiro Ale, minister of finance and prices.
The figures reached are due to an over-fulfilment of revenues and under-execution of expenditures, which must be monitored. A positive result was also achieved in the current account, meaning the balance between current income and the financing of current expenditures is positive, the minister explained.
Local budgets are also performing well, with the provinces of Havana, Matanzas, and Villa Clara standing out.
Regueiro Ale highlighted the positive impacts of the tax measures associated with the implementation of the government program to correct distortions and boost the economy, including the special tax on fuel, cigarettes, and tobacco, taxes on the transfer of property and inheritances, and the sale of vehicles in dollars. The prime minister highlighted the existing potential and asserted that revenue can continue to increase.
He warned that key social program funds are being underspent and affirmed that this money should be used appropriately for the various social programs.
During this working session, the Council of Ministers approved the proposed rationale and the draft Decree-Law “On Customs,” as well as its upcoming submission to the Council of State.
According to Nelson Cordoves Reyes, head of the General Customs Office of the Republic (AGR by its Spanish acronym), its purpose is to regulate the organization of the AGR and its operation regarding the formalization, authorization, use, and control of customs regimes; the customs clearance of goods and the means that transport them, shipments, travellers, and their luggage; as well as compliance with regulations that impact Customs activities at the border.
The text complies with constitutional principles and current legislation, especially with regard to administrative, tax, financial, and foreign trade matters. The members of Cuba’s highest governing body learned about the implementation of the policy for the improvement of the National Audit System and approved the policy for the creation of the Territorial Employment Management Service, which will facilitate better access to quality employment.
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