2023-12-28 17:54:58
Original source with all the details in the Ministry of Economy justifies the increase in prices for the winery’s products.
Gil Fernández did not detail how much the price increase will be for the winery’s products, whose basket is getting smaller every day. (Photo © Cuban Newspaper)
The Minister of Economy and Planning of Cuba, Alejandro Gil Fernández, justified the recent announcement of a price increase for products in the basic basket that the State distributes through the ration book.
According to the communist leader, the current sales prices in Cuban wineries are “distorted” and the State cannot continue assuming subsidies, especially when it is mired in a huge fiscal deficit, which by 2024 will reach 15% of the Gross Domestic Product. (GDP).
Gil Fernández did not detail how much the price increase will be for the winery’s products, whose basket is getting smaller every day. However, he clarified that the purpose is the end of the universal subsidy, going from subsidizing products to subsidizing people. However, in his vague explanation he also did not clarify what index will be used to decide which person deserves to be subsidized and which does not.
Summary, the basic basket as it is known today will cease to exist and what will arrive are products at prices without subsidies… then Alejandro Gil says that we have the cheapest gasoline in the world, we have to see how many liters a Cuban can buy with his salary.#Cuba pic.twitter.com/gfPtXm8fqY
— Mag Jorge Castro (@mjorgec1994) December 27, 2023
“It is something that we have to review, because this attempt to maintain the assurance of products at highly subsidized prices is currently not a very equitable distribution,” he added.
The official specified that the basket will not be eliminated, that is, the regulation and intervention of the State in what can be eaten. Each citizen will continue to receive it, as a form of social control, but he acknowledged that they are going to “move some prices.”
“That the subsidies be transferred to people who are in a vulnerable situation and are not of a massive nature to all the products that are delivered through the regulated family basket,” said Gil.
MORE STATE INTERVENTION. This is what the economy minister announces that he does not know about economics. This will bring more shortages and market control. In the end prices, inflation, hunger and need will rise further. SOCIALISM IS MISERY #CubaDictatorship
pic.twitter.com/Gzeq7lhrUo— FRANK EL MAKINA (@FrankElMakina) December 28, 2023
What is the impact of savings for the State by eliminating subsidies?
In addition, the real impact of the measure also remains to be seen, that is, how much the State would save, taking into account that each day fewer products are distributed through the ration book.
Cuba imports most of the food it consumes. According to the Minister of Economy, the country spends more than 1.6 billion dollars on imports to ensure the regulated family basket. The figure is 700 million more than in 2019, the year before the arrival of the coronavirus, which unleashed a global inflationary crisis. The above implies an extra financial burden that the communist State cannot assume, which is why it will transfer the economic burden to the population.
The statements have generated concern among citizens, who are already facing a deep economic crisis since the monetary regulation in 2021, and now they cannot explain how they will be able to pay for the winery’s products. The social impact of the measure could be more damaging to the regime than the real economic savings. Faced with a worsening of living conditions, the Cuban people could generate massive protests like the one that occurred on July 11, 2021.
Inconsistencies everywhere in everything they talked about. Measures that are going to accentuate problems? Please practice the art of lying more, it will seem like a lie with the teacher you had (FIDEL C.) You will see the disaster next year.
pic.twitter.com/4xdyVqj247— FRANK EL MAKINA (@FrankElMakina) December 28, 2023
Original source and more details in PERIÓDICO CUBANO
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