Cuban newspaper reports on 2018 State's Budget
The relevance of Cuba's economic plans and the State's Budget made headlines today, as part of concerns by the government and people.
8 de enero de 2018 - Taken from Prensa Latina
The relevance of Cuba's economic plans and the State's Budget made headlines today, as part of concerns by the government and people. That matter was covered on Sunday by the newspaper Juventud Rebelde in an article.
The daily pointed out that the approval of the State's Budget every year by the People's Power National Assembly (Parliament) establishes the distribution of resources for the benefit of society.
The State's Budget is a balance of revenues and expenditures at the national level that the Parliament approves every year, taking into consideration the situation of the country's economy, capacity to generate revenues and rationality of expenditures, the article added.
Law 125 on the 2018 State Budget was published on the Ordinary Official Gazette No. 48 on December 29, 2017, and is available at www.gacetaoficial.gob.cu.
The article pointed out that the State's Budget in Cuba aims to develop the domestic economy in order to meet social needs, especially the material, spiritual and cultural wellbeing of people, among other priorities.
Gross revenues this year might increase to 57.2 billion pesos, although net revenues are expected to total 56.9 billion pesos, taking into consideration possible returns estimated at 300 million pesos (one Cuban peso equals one dollar, according to the official exchange rate). Expenditures are estimated at 68.625 billion pesos.
The article noted that at the 10th Ordinary Session of the 8th Legislature of the People's Power National Assembly in December, the results of the revenue-expenditure balance were explained, and the fiscal deficit totals 11.725 billion pesos.
The State's Budget will prioritize funding production and investments.
Including the fiscal deficit and the recovery of the public debt contracted by the budget, due in 2018, the State will have to cover a financial demand of 15.749 million pesos.
That sum will be handled by issuing Sovereign Bonds, a debt instrument that will allow the government to access to funds and provides certain benefits to creditors, in this case, the national banking system.
Sources from the Ministry of Finance and Prices told Juventud Rebelde that the budgetary deficit focuses on funding production and investments, mainly to boost exports and reduce imports.
Revenues from taxes, tariffs and contributions will cover 75 percent of the State's Budget in 2018, according to the article.
According to the gradual implementation of the Tax Law in force since 2013, 23 of 25 taxes will be enforced totally or partially.
The article in Juventud Rebelde reviews the trajectory of those financial rules and urges the entire country to work together in 2018.