Radio Cadena Agramonte emisiora de Camagüey
Havana, July 17 – During his intervention this Wednesday to the plenary of the fifth ordinary session of the National Assembly of People's Power, in its X Legislature, the Minister of Finance and Prices, Vladimir Regueiro Ale, presented the 2024 State budget settlement report.
Regueiro Ale stressed that this exercise took place under "extremely complex" economic conditions, marked by the intensification of the blockade and persistent inflation in international markets, factors which had a negative impact on the national economy, "that in the period does not show growth".
In response to the budgetary tensions, Regueiro Ale emphasized that the principles of "priority and responsibility" in the use of allocated resources were reinforced, with an emphasis on spending control.
The decisions adopted included updating prices, strengthening fiscal control, overseeing economic actors, and promoting tax discipline.
Social spending received priority attention, with 63 per cent of the budget allocated to sectors such as welfare and social security, public health and education.
The State budget closed with a fiscal deficit of 79.528 billion pesos, 67.863 billion pesos lower than expected.
According to the minister, this result was due to a 7% over-fulfillment of revenues and an 8% under-execution of expenditures compared to what was planned, which confirms compliance with the stipulations in Law 164 on the State Budget for the year 2024.
Current expenditures were 7 per cent below plan, mainly due to a 13% under-fulfillment of financing for the business sector. Regueiro said this is linked to the national electro-energetic situation.
Five percent of budgeted spending on social policies and another five percent on investment spending were not implemented, resulting in a total deviation of 8%, "which is not favorable and negatively impacts economic activity levels."
Despite this, the current account result was "more favorable than planned," with a deficit of 6.6 billion pesos, lower than that recorded in 2023.
"Current revenues financed 98% of current expenditures, exceeding the forecast by 13 points and the level reached in 2023 by 17 points," the minister emphasized.
The structural performance reflects greater financial independence of the State, reducing debt pressure and improving its capacity to meet obligations sustainably. The capital account deficit amounted to 72.9 billion pesos, also below the planned figure.
The fiscal deficit represented 6.5% of GDP at current prices, maintaining the trend of recent years toward an improvement in this indicator.
Gross revenue reached 391.215 billion pesos, 10% above expectations. The minister indicated that 64% of these resources come from taxes, consolidating them as the main source of financing.
The tax policies implemented in 2024, aimed at correcting distortions and reviving the economy, contributed to overcompliance.
The growth of the non-state sector and greater efficiency in tax management positively influenced sales revenue, MSME profits, the workforce, and personal income.
Non-tax revenues amounted to 141.784 billion pesos, achieving 115% compliance.
Despite progress in some territories, a high backlog of unenforced fines persists. Non-state management systems contributed 58.258 billion pesos, representing 143% of the annual plan and a 15% share of the tax structure.
More than 217,000 fiscal oversight actions were carried out, determining debts totaling 6.95 billion pesos.
Deputy Félix Martínez Suárez read the opinion of the Economic Commission of the Parliament on the report, after which the deputies proceeded to approve it. (Text and Photo: Cubadebate)
