The Cuban government has approved and will implement the removal of subsidies for the basic food basket distributed through the supply booklet.
"This impacts the budget; we are looking for mechanisms and will implement them gradually, product by product, but it is a path that cannot be reversed," said Prime Minister Manuel Marrero Cruz during his speech at the National Assembly this Wednesday.
He updated the plenary on the status of compliance with the government plan designed to correct economic distortions and revitalize the economy, one year after its approval by the Council of Ministers.
He acknowledged that the results have not met the population's expectations. "We have the dissatisfaction that not enough progress has been made," he stated.
The plan includes pricing policies and the removal of subsidies for basic products and services, decisions that Marrero described as "complex" due to their impact on the purchasing power of Cubans and the stability of the national currency.
"One analysis we reached is the complete elimination of the subsidy for the basic basket, but the issue is complicated because we would not only need to subsidize those in vulnerable conditions. For most budgeted workers, their salaries would hardly allow them to cover that difference," said Marrero.
The cost of food in Cuba is so high that basic products like rice, sugar, eggs, and bread would be beyond the reach of many families.
He reiterated that the government aims to redirect subsidies towards individuals in vulnerable situations, but they do not explain how they will do this and acknowledge that the majority of Cubans are living in economic precarity.
The regime claims it has a plan to "not worsen living conditions" in the country. According to Marrero, the strategy will involve gradually eliminating all subsidized food, a practice that Cubans have noticed for years.
This announcement comes amidst an economic crisis in Cuba characterized by sustained inflation, shortages of food and basic goods, and increasing public discontent.
Frequently Asked Questions about the Elimination of Subsidies in Cuba
Why did the Cuban government decide to eliminate subsidies for the basic basket of goods?
The Cuban government has decided to eliminate subsidies for the basic goods basket as part of a plan to correct economic distortions and revitalize the economy. Prime Minister Manuel Marrero Cruz stated that the removal of subsidies is a complex but necessary measure, given its impact on the country's budget and economy.
¿Cómo afectará la eliminación de subsidios a las familias cubanas?
The removal of subsidies on basic goods will significantly impact Cuban families, as essential products like rice, sugar, eggs, and bread may become unaffordable for many due to rising prices. The government has promised to redirect subsidies to those in vulnerable situations, but has not clearly explained how this will be implemented.
What measures is the Cuban government proposing to mitigate the impact of the elimination of subsidies?
The Cuban government plans to redirect subsidies to vulnerable individuals, although specific mechanisms have not been detailed. The regime claims to be working on a plan to prevent worsening living conditions; however, the majority of Cubans are in economic hardship, which casts doubt on the effectiveness of these measures.
What economic context is Cuba currently facing?
Cuba is facing an economic crisis characterized by sustained inflation, shortages of food and basic goods, and growing public discontent. The situation has been further exacerbated by failed economic policies implemented since 2021, which have increased reliance on imports and worsened the availability of essential products.
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