State budget provisions indicate a gradual recovery of the Cuban economy

HAVANA, Cuba, Dec 21 (ACN) The 2022 State Budget takes into account the gradual recovery of the Cuban economy in the basic levels of activity, in a complex scenario in which the tightened economic, financial and commercial blockade of the U.S. government and the effects of the world economic crisis produced by the COVID-19 persist.

When presenting before Parliament the estimates of the execution of the Budget Law in 2021 and the projections for the coming year, Meysi Bolaños, Minister of Finance and Prices of Cuba, pointed out that in a country where social justice prevails, the life and welfare of its citizens will always be a priority, as was shown in the confrontation with COVID-19.

This pandemic has evidenced the value of having a solid health and science system, with a human capital of high sensitivity, dedication and love, which have saved our lives, which commits us to continue defending, from the State Budget, the most sacred conquests of our Socialist Revolution, she said.

She also explained that in the first year of the monetary ordering it was necessary to project and execute a reconverted budget, without precedents and experiences, while it is estimated to conclude the period with a fiscal deficit of 69,437 million pesos, 17 billion pesos less, as a result of an over-fulfillment in revenues by a little more than one billion pesos and an under-execution in total expenditures, in which those not made in the investment processes have an impact.

In this sense, Bolaños indicated that COVID-19 had to allocate expenses amounting to 16 billion pesos to assume the vaccination process of the Cuban population, and the salary guarantees for justified and necessary interruptions, a clear proof that in socialist Cuba no one is left unprotected, which included economic assistance to artists.

Another priority in 2021 was the transformation of neighborhoods and communities, with the objective of gradually solving the population's problems, addressing situations of vulnerability and improving the living conditions of their inhabitants, a process that began in Havana and required an additional 800 million pesos.

She informed that for 2022, expenditures for 224,580 million pesos are planned in the Budgeted Activity, which represent 73 % of the total, with 69 % being allocated to health, education, assistance and social security.

To guarantee the universal and free health system, to which all Cubans have access regardless of race, gender and social and economic status, 56.503 billion pesos are allocated, and in order for us to be more protected and happy, 500 million pesos will be allocated to support vaccination booster vaccination, the head of Finance and Prices mentioned.

Education, another of the pillars of the Revolution, will receive 55,373 million pesos, which will support the study and training of 1,569,000 children and young people in kindergarten, primary, special, general, middle school, technical and professional education, as well as adult education, in addition to the preparation in higher education of students being trained in the more than 50 universities and higher education centers.

The Social Security Budget, which finances the pensions and retirements of 1,700,000 beneficiaries with the well-deserved retribution for many years of work, is allocated 37,602 million pesos.

Likewise, 6,780 million pesos are projected to finance the main activities that contribute to the support and preservation of national culture, including artistic and literary creation and the safeguarding of cultural heritage.

The Minister informed that the budgets of the municipalities and provinces focus on the materialization of social services and programs, hence the importance of strengthening them, so that they become more autonomous, reflect the particularities of their territory and are participatory.
In this objective, total expenditures are planned for 116,754 million pesos, a 3% growth, she continued.

From the main budget, 250 million pesos are foreseen for the adoption of new measures in the attention of social programs, which allow reducing inequalities still present in Cuban society.

Bolaños also informed that 2,278 million pesos are projected for the transformation of neighborhoods and communities, which includes the conservation and maintenance of buildings and citadels, the construction of housing, the repair of roads, hydraulic networks and the installation of services such as medical offices and warehouses.

The local budgets also provide financial support of 110 million pesos to attend to the housing needs of mothers with three or more minor children, a policy of continuity as part of the response to the behavior of the country's demographic dynamics.

In 2022, transfers to the business sector are reduced, which, as the main actor of the Cuban economy, must use all efficiency reserves and the measures approved for its improvement, improving its results.

Likewise, for subsidies to products and services of high impact on the population, most of the 39.666 billion foreseen in the non-budgeted activity are allocated, as an expression of the social responsibility of the Cuban Government with its people, among which are electricity rates, food for children, medical diets for chronic diseases, controlled and complementary medicines, interprovincial and air transportation.

To support social and infrastructure investments of importance for the development of the country, 37.572 billion pesos are planned, including the construction of 15,689 state housing units, the transformation of the energy matrix, hydraulic development programs, works associated with the Mariel Special Development Zone and tourism and agricultural and livestock development programs.

According to the Minister, the projection of income considers the contributions of all sectors of the economy, including new actors, in a scenario in which activity levels are recovering and in which the main objective is to achieve, as a general objective, the contributions in due time and form by all taxpayers.

Planned gross revenues amount to 233,274 million pesos, of which 48% will be raised as a result of the application of taxes, rates and contributions and their extension to taxpayers who will begin to contribute some of these taxes.

We have the challenge of improving budgetary performance in order to guarantee quality and efficiency in the provision of basic services, increase income, eliminate unnecessary or postponable expenses, strengthen accounting and eliminate deficiencies in the administration of money from the treasuries, for which systematic institutional and popular controls are required, the Minister concluded.