Cuba reduces budget deficit in 2009

Cuba reduces budget deficit in 2009
Published on Monday, August 2, 2010

HAVANA, Cuba (ACN) -- Cuba reduced the budget deficit approved by the
Parliament in 2009 by 826 million pesos and increased revenues, though
slightly, reported the Committee on Economic Affairs to the National
Assembly of People's Power.

Chairman of this Committee Osvaldo Martinez recalled that this went on
through successive adjustments in the economic plan and reductions of
the expected growth In real terms, we reached 4.9 percent of GDP, better
than what was approved and even more than the deficit of 6.7 percent of
GDP in 2008, Martinez stated in his speech at the plenary session.

He explained that the 0.8 percent growth in the revenues allowed
covering the small increase in unplanned expenditure, and a
redistribution to cover wage increases in education, to acquire
agricultural products to replace imports, and to support actions for the
recovering of the damages caused by the 2008 hurricanes.

Martinez said one of the factors that affected a better performance of
the economy was the people lagging behind in payments for the household
appliances sold to them that amount to over 650 million pesos.

On expenditure, Martinez praised its reduction by 1.8 percent "which
expresses a positive trend and those efforts to save should be increased".

He also expressed concern about the negative subsidy for losses to
government enterprises, amounting to 602 500 000 pesos, added to the
over 3 billion pesos in losses accumulated in the last three years,
which prevent them from making payments.

Finance and Prices Minister Lina Peraza said recalled that the budget
deficit for 2009 was of a little over 3 billion pesos and explained that
71 percent of the budgeted expenditure is concentrated in education,
health, safety and welfare, culture and sport.

She clarified that even though the budget was settled with favorable
results the control of resources is still insufficient for monies to be
used on real needs, while there is a lack of transparency in the
accounting records.

She lashed weak management, extended indiscipline and the bad habit of
wasting counting on the government to provide further.

http://www.caribbeannetnews.com/article.php?news_id=24078