Cuba reached its highest fiscal deficit in 2023 since the start of the economic crisis in 2020, reflecting a significant deterioration in the state's financial situation, according to figures from the Ministry of Finance and Price.
The country's fiscal deficit reached 94,959.1 million pesos, equivalent to 3,449 million euros at the official exchange rate for legal entities, representing an expenditure 38.8 percent higher than income, reported the EFE agency after assessing the statistics.
The Cuban government obtained total net revenues of 245,076 million pesos, a figure slightly higher than that of 2022, but still lower than the amount recorded in 2021.
Despite this increase, total expenses reached 340,492.3 million pesos, an eight percent increase compared to 2022 and six percent more than in 2021.
This imbalance underscores the ongoing pressure on Cuban public finances, which have already accumulated five consecutive years of significant deficits.
The main sources of income for the State came from the profits tax and other non-tax revenues, while the sectors that absorbed the largest portion of the expenditure were Public Health and Social Assistance, Public Administration—which includes Defense and financial operations—and Education.
Given this increasingly complex fiscal landscape, the Cuban government has presented two adjustment plans since late 2023, but neither has impacted the economy nor helped the people improve their standard of living.
These plans aim to increase revenues, primarily in foreign currency, and reduce public spending, with the goal of mitigating the impact of the deficit on the national economy.
That said, the success of these measures remains to be seen, as the country continues to face significant challenges in the context of a prolonged economic crisis, amid its largest migration crisis in history.
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