ECONOMY-CUBA: New Budget Cuts in Store
By Dalia Acosta and Patricia Grogg
HOLGUÍN, Cuba (IPS) - The impact of
the global financial crisis on the economy
in Cuba was a major focus of a speech Sunday
by President Raúl Castro, who confirmed that
further "adjustments" will be made to this
year's budget.
In his 35-minute address in this eastern
city of Holguín marking the anniversary of
the Jul. 26, 1953 attack on the Moncada
military barracks in Santiago de Cuba, the
leader did not provide details on the
complex situation currently facing Cuba, but
did say there has been a "significant
reduction" in export revenues and
"restrictions" in access to foreign credit.
The Council of Ministers will meet Tuesday
to analyse "the second adjustment in
expenditure in this year's budget plan,"
said Castro.
In the first few months of 2009, the
government already cut the state budget by
six percent.
The authorities also sharply revised their
GDP growth projections downward from six to
2.5 percent, although economists consulted
by IPS fear that growth could be under one
percent this year.
In response to the reduced availability of
foreign exchange, the government implemented
a strict energy savings plan in June –
including scheduled power outages and
temporary workplace shutdowns - in an
attempt to stick to the budgeted expenditure
on fuel imports.
Castro also announced that the Council of
Ministers meeting would be followed
Wednesday by a plenary meeting of the
Communist Party Central Committee, to
discuss "vital matters related to the
national and international situation."
In addition, the legislature will be meeting
on Aug. 1 to debate a draft law creating a
comptroller-general's office, whose
oversight of government spending will
contribute to stricter "compliance with
regulations," he said.
The 1953 attack on the Moncada barracks led
by Fidel Castro – in which his brother Raúl
also took part – was the first attempt to
overthrow dictator Fulgencio Batista and is
considered the start of the Cuban
revolution.
Sunday's anniversary was the third headed by
Raúl Castro since his ailing brother stepped
aside as president.
In a landmark speech given by Castro as
interim president on this important holiday
in 2007, he referred to the "extremely
important need" to produce more food, since
nearly half of the country's arable land was
idle or underproductive.
The announcement foreshadowed the first
major reform of his government: a 2008 law
distributing unproductive government land to
private farmers.
Castro reported that some 82,000 of the more
than 110,000 applications for land have
already been approved, with 690,000 hectares
- 39 percent of the idle land – distributed
so far.
The president said it was top priority and a
matter of "national security" to produce
food that can be produced in Cuba but is
imported at an enormous cost. According to
official figures, 2.4 billion dollars went
to food imports in 2008.
One-third of the land distributed so far –
225,000 hectares – has been planted, said
Castro, who also alluded to plans for
expanding urban gardening, in people's
backyards for example.
"If one day fuel is lacking in this crazy,
fast-changing world," food would be closer
that way, he said.
Baptist pastor Raúl Suárez, a legislator,
said the policy of land distribution and
Castro's emphasis on seeking "the best way"
to get products from the farm to consumers,
to avoid transporting them long distances,
were "the right approach."
"We are moving forward, with the limitations
faced by our country because we don't always
have the infrastructure or resources. But
we're progressing, which I know firsthand
because I have my own organoponic garden and
I have had a very good harvest, to share
with my family and others," he told IPS.
The lawmaker also praised measures that have
been adopted for conserving water and
improving the efficiency of water
distribution. "We are trying to get a leap
on a crisis that inexorably lies ahead at a
global level and for our country as well,"
he said.
In his speech, Castro gave a brief rundown
of investments made in Holguín, Santiago de
Cuba and other eastern provinces to expand
water supplies in drought-stricken areas.
"These are projects for the present and
above all for the future, when water will be
an increasingly scarce resource on a long,
narrow island like ours, where the precious
liquid quickly runs into the ocean and is
lost," he said.
Castro also mentioned the 10 billion dollars
in damages caused in 2008 in Cuba by
hurricanes Gustav, Ike and Paloma.
"Raúl, give Fidel a big hug from his people.
We love you dearly" read a hand-written sign
held by someone in the crowd Sunday in
Holguín, where the president held the rally
in recognition of the recovery efforts made
by this province after it was hit hard by
Hurricane Ike last year. |
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