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Cuban Government Ends Ration Book Subsidies: "No Turning Back"

Thursday, December 19, 2024 by Henry Cruz

The Cuban government has approved and is set to initiate the removal of subsidies for the basic food basket distributed through the ration book. "This affects the budget, and we are exploring mechanisms to implement it gradually, product by product, but there's no turning back," stated Prime Minister Manuel Marrero Cruz during his address to the National Assembly on Wednesday.

Marrero updated the plenary on the progress of the government's plan designed to correct economic distortions and revive the economy, a year after its approval by the Council of Ministers. He admitted that the outcomes have not met the public's expectations. "We are dissatisfied with the lack of necessary progress," he confessed.

The plan involves price policies and the removal of subsidies for basic products and services—decisions Marrero described as "complex" due to their impact on Cubans' purchasing power and the stability of the national currency. "One analysis we concluded is to completely eliminate the subsidy for the basic food basket, but the issue is complicated because we would need to subsidize individuals in vulnerable situations. Practically speaking, the majority of budgeted workers' salaries wouldn't cover that gap," Marrero explained.

The cost of food in Cuba is so exorbitant that staple items such as rice, sugar, eggs, and bread would become unaffordable for many families. Marrero reiterated that the government aims to redirect subsidies towards those in vulnerable conditions, yet they have not explained how this will be achieved and acknowledge that most Cubans find themselves in such economic precariousness.

The regime claims to have a plan to "not worsen living conditions" in the country. According to Marrero, the strategy will be to gradually eliminate all subsidized foods, a practice that Cubans have noticed for years. This announcement comes amid an economic crisis in Cuba characterized by sustained inflation, shortages of food and essential goods, and growing public dissatisfaction.

Frequently Asked Questions About Cuba's Economic Changes

Why is the Cuban government removing subsidies from the ration book?

The government aims to correct economic distortions and revive the economy by gradually removing subsidies from the basic food basket, despite the impact on the national budget.

How will this decision affect Cuban families?

The removal of subsidies is expected to make staple foods such as rice, sugar, eggs, and bread unaffordable for many families, further straining their purchasing power.

What is the government's plan for addressing economic vulnerability?

The government plans to redirect subsidies to individuals in vulnerable situations, but details on how this will be implemented remain unclear.

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