The Government Program is crucial in the economic battle for socialist construction

Havana, Nov 22.- The Government Program to correct distortions and re-boost the economy -a guiding thread aimed at overcoming the complex situation facing the country, conditioned by the intensification of an unprecedented blockade- is comprised of ten general objectives and 106 specific ones, all interrelated. Therefore, a work system to monitor its implementation has been created for daily debate in society.

This was explained by Oscar Pérez-Oliva Fraga, Deputy Prime Minister and Minister of Foreign Trade and Foreign Investment (Mincex, for its acronym in Spanish), during his appearance on the television program Mesa Redonda. He detailed that Cuba is a country with an open economy, highly dependent on foreign trade, where the two items with the greatest weight in our imports are fuel and food.

Regarding fuel, although the country still depends largely on imports, "steps are being taken to increase national production". As for food, Pérez-Oliva Fraga stated that a series of items that could be produced locally continue to be imported: "And that is one of the battles we are fighting, precisely to reduce imports, meaning, to substitute them, so that with the foreign currency currently allocated to food purchases, we can progress in other strategic areas of the economy".

Another pillar of the Program is to advance in the resizing, development, and management of the socialist state enterprise, as well as in strategic management for territorial development, as part of the process of decentralizing powers to the territories, granting them greater autonomy in their management.

ADVANCING IN MACROECONOMIC STABILIZATION

A macroeconomic stabilization process, emphasized Joaquín Alonso Vázquez, Minister of Economy and Planning (MEP), is not a short-term project or program, and achieving these balances must be accompanied by observance and discipline.

Therefore, as part of the results of implementing this Program, by the end of October -Alonso Vázquez stated- the fiscal deficit had been reduced.

This result represents positive progress, as that deficit is financed by monetary issuance, and if unfavorable, it causes an increase in the money supply in circulation, generates inflationary pressures, depreciates the Cuban peso, and reduces purchasing power.

Another consequence of this fiscal management, he said, is that this year, the Budget's current account has been in surplus, which has allowed for containing monetary issuance. This means that it has not been necessary to issue all the money that would have been required to finance current expenditure nor the capital account -investments executed by the State Budget. the minister specified.

However, he acknowledged that the deficit remains high, and as long as it stays above 5% of the Gross Domestic Product, its financing through primary issuance is harmful to the economy.

In that sense, he insisted that we must find formulas that allow us to advance without leaving anyone behind: without generating negative social impacts and without affecting salaried workers or pensioners.

Concurrently, the work of the National Office of Tax Administration (ONAT, for its acronym in Spanish) is being perfected, as it presented various problems. For this, a policy for its improvement was approved, which, although it cannot be fully implemented immediately, includes tasks and actions that will be progressively complemented and strengthened, pointed out the MEP head.

Prices are rising. And one of the causes is the excess of money in circulation. If the deficit is very large and is financed through primary issuance, putting money into circulation, prices will rise because there is demand, he stated.

Regarding the money in circulation, most of it is concentrated in the hands of a very small group of people or entities. And that has a macroeconomic impact because it also distorts the equilibrium and influences price increases.

Furthermore, he called for creating incentives to increase salaries and pensions in order to raise the population's purchasing power, while continuing efforts to further reduce the price index.

Likewise, Alonso Vázquez warned about indiscipline regarding established prices, affirming that over one million violations have been detected in different sectors of the economy, leading to the imposition of fines and decisions being taken regarding those responsible.

He noted that they are seeking the convertibility of the peso and connecting the different economic actors; as well as achieving a new mechanism for the management, control, and allocation of foreign currency.

PRODUCING TO SUBSTITUTE IMPORTS

Deputy Prime Minister Pérez-Oliva Fraga jointly addressed general objectives 2 and 3, aimed respectively at increasing and diversifying the country's external income and increasing national production, with an emphasis on food.

He stated that, due to the blockade imposed by the United States, it must be taken into account that our country does not have access to the international financial system. This situation is aggravated by its inclusion on the list of state sponsors of terrorism, ultimately resulting in significant disruptions to relations with foreign financial and banking institutions.

Another component is foreign direct investment, in which we have not been able to attract the necessary levels. We are completely dissatisfied with this year's results in implementing the program because we have not even been able to obtain the planned revenues.

Pérez-Oliva Fraga added that, to guarantee income in foreign currency, the first thing we must do is produce, as there are several exportable items that are not being produced, such as sugar, charcoal, and honey.

In this sense, he referred to the need to substitute imports. This argument is based on the fact that many of the products being imported can be produced within the nation, with quality and at competitive prices, but, to achieve this, it is necessary for the companies that generate them to have financial autonomy to have the pertinent resources at the right time.

Regarding national production, the Program envisions the improvement and updating of the contracting and collection mechanisms for agricultural products. He clarified that the definitive solution is to incentivize production, increase supply, and allow the different actors to compete in the market to meet customer demand.

Meanwhile, on the progress in resizing, developing, and managing the socialist state enterprise and the remaining economic actors in their role, he clarified that the main goals are: to transform the business fabric, incentive schemes, interconnections between the different economic actors; and to perfect the institutional framework, attention, creation, and evolution of the entire Cuban business system.

The Government Program seeks to ensure that the economic actors -in a favorable macroeconomic environment, with a suitable exchange market and a wholesale market to access required resources- foster the accelerated and sustainable development of our economy over time, concluded the Deputy Prime Minister.

AT THE GRASSROOTS ORGANIZATIONS

Jorge Luis Broche Lorenzo, a member of the Secretariat and head of the Economic and Productive Department of the Central Committee of the Party, explained that the Program constitutes a tactical planning and implementation tool for managing the crisis. It responds to critical distortions, macroeconomic imbalances, and severe external impacts. It is articulated with what was approved to update the Cuban model; it does not replace it, he stressed.

Therefore, he emphasized, we must simultaneously build political and communicational safeguards to implement the actions with the created conditions, according to the diversity in society, seeking to generate the least possible impacts so that no one is left behind.

Cadres play a fundamental role and must manage to stir things up. It is necessary to explain the exchange market; the mechanism for the management, control, and allocation of foreign currency; popular participation; socialist democracy; the role of the membership and work collectives.

This is a fundamental process because it determines the economic battle, the construction of socialism, and the awareness, education, and mobilization of the people. (Text and photo: Granma Digital)