Raul Castro, the President of Cuba, has stated that the major focus of the 2012 budget will be to stay true to the previously formulated Economic Plan so that the government does not end up making unnecessary expenditures as a result of the present global financial condition.
Highlights of Cuba Budget 2012:
The Cuban President has asked the ministers to plan the 2012 budget according to the available resources and necessities. He has stated that with the reduction in resources the planning will have to be effective so that there are no problems in the upcoming fiscal.
The 2012 Cuba budget is expected to focus on saving the maximum possible oil and create new opportunities for adding to the present levels of economic production.
It is expected that the expenses in the food sector will not be decreased in 2012 fiscal because of the rapid increase in food prices around the world. But it is presumed that domestic production in the upcoming fiscal will be sufficient to cover majority of the requirement in this sector.
One of the initial steps of creating the drafted version of the 2012 budget was a meeting involving the central government, the domestic consumers and producers.
Owners of Cuban companies and ministers were also supposed to take part in this meeting, which was supposed to analyze the possibilities and requirements in various domains.
The national economy uses procedures that were followed in Soviet Union but Raul Castro is making his best efforts to amend the system as it has been debt ridden and stagnant in the last couple of years.
He has primarily focused on increasing exports and domestic production, and reducing imports significantly.
According to the official newspaper of the Communist Party, Granma, the government has accepted its failure regarding the measures taken to increase domestic food production. Along with high global food prices, this factor has not let Cuba restrict its imports to within 60-70% of its local consumption.
The recent meeting has also adopted several measures to remove the problems being faced by the Basic Units of Cooperative Production, which is an association of farming cooperatives that use publicly held lands.
As part of the modified land lease program, new farmers will receive small plots for 10 years.
Cuba Budget 2012 – Expectations :
It is assumed that the new land lease agreements will lead to a properly incorporated, permanent and stable labor force. It will also make sure that the farmers families get settlements for a substantial period of time so that they can function properly.
Cuba Budget 2011 – Information:
Cuba s economy was estimated to grow by 3 percent in 2011 fiscal but so far it has achieved a rate of 2.7 percent. The Caribbean country has also experienced a trade surplus for the third consecutive year. The 2012 budget is expected to maintain this growth rate.
Economists have given several reasons for Cuba s inability to meet the growth predictions for the present fiscal:
Failure to meet investment targets regarding assembling and construction.
Meat, beans, milk, and banana producers have not been able to satisfy their yearly targets.
Less than estimated revenue from sales taxes. This implies that domestic trade was below par for the whole financial year.
This made the national government to purchase more food than had been stated in the 2011 budget. For example, they incurred additional expenditure of 15 million US dollars in buying powdered milk.
The Bank of International Settlements reserves were calculated at 5.649 billion dollars in June 2011 this amount is three times more than 2008 fiscal.