| A detailed report - objective, honest and critical – describing the progress of the year’s economic plan during the first six months of the year was presented to representatives of the people during the 7th Session of the People’s Power National Assembly, by Adel Yzquierdo, member of the Party’s Political Bureau and Minister of Economy and Planning. Adel Yzquierdo and Marino Murillo address the Assembly. PHOTO: JORGE LUIS GONZÁLEZ At the close of this period, the plan for investments and construction was 33.4% complete and estimates indicate that, by the end of the year in December, it will reach the 77% mark, the Minister reported and before addressing the fundamental causes of the shortfall, he asserted that the Ministry of Economy and Planning (MEP) bears the greatest responsibility. "We have as our mission the resolution of the problem and we are going to make sure that what is projected is accomplished, since the damage that this causes within the economy is significant," he said. A lack of comprehensive preparation of the investment process, planning mistakes, as well as the delayed delivery of imported supplies and equipment have hindered the execution of the plan, among other factors. Yzquierdo commented that the Cuban economy grew 1.9% as compared to the same period last year and estimates indicate that, by the end of 2011, growth of the gross national product should reach 2.9%. Nevertheless, the report submitted to the deputies did not concentrate on such positives, but rather on the real untapped potential for growth, which if developed efficiently could produce even greater, tangible results. He presented as an example the Ministry of Agriculture’s shortfall in meeting its plan for important foodstuffs such as beef, milk and beans. This, of course, had repercussions in the food processing industry. Plans there could not be met since the agricultural products expected were not available. Yzquierdo reported that this sector’s performance will be critical in the third and fourth quarters of the year, given that the volume of products available for processing should increase. All of the above, he argued, clearly illustrates the strategic importance of the Ministry of Agriculture meeting its food production projections – doing so well and efficiently. This ministry is not, however, the only one failing to meet its goals, also falling behind in various production lines are Steel and Metals, Light Industry, Construction, Informatics and Tele-communications, as well as the Scientific Complex west of Havana. Taking the same critical and objective approach, the Minister addressed the enterprise system and emphasized that deficiencies in planning persist in this important sphere as well. At the end of the year’s first quarter, he reported, the performance of a number of enterprises within the country was reviewed. A significant portion of these are showing losses, while others are meeting or surpassing projected earnings. At the same time, some surpassed their annual goals within the first six months of the year, clear evidence of poor planning. In his report on the energy sector, Yzquierdo stressed progress made in conserving resources and indicated that the residential sector, which has always used more energy than planned, is expected to consume 99% of the amount projected, as is estimated for state users. He noted that 119,000 fewer tons of fuel than projected have been consumed, although even in this arena, he said, "There remains much potential which we have not yet been able to tap." In his economic analysis of transportation, Yzquierdo indicated that the amount of cargo transported exceeded plans by some 500,000 tons, although the Ministry of Transportation missed its goal in the automotive sector by 5.9%, resulting in over-consumption of fuel. Referring to foreign trade, Yzquierdo emphasized a positive step forward in increasing exports during the first six months of the year, with projections being met and imports declining slightly. He highlighted the surpassing of plans for the production of goods which, at the end of June, stood at 14% beyond projections. Looking to the second half of the year, the Minister reiterated the vital importance of maintaining the country’s reliable sources of income, meaning tourism, nickel, sugar, tobacco and rum; developing the potential for more efficiency within the economy, which would have contributed to greater growth; assuring the availability of food, prioritizing national production and keeping retail outlets well stocked with Cuban and imported products. He likewise emphasized the need to maintain progress being made in oil exploration; concentrate on investments which generate income rapidly; prioritize the rationalization of workplace staffing; accelerate the distribution of idle lands and ensure production on land awarded in usufruct; increase the production of natural fertilizers and pesticides, as well as that of forage; study the use of existing irrigation systems and expand the use of draft animals, as well as maximize the production of construction materials and agricultural consumables, among other tasks. Yzquierdo said that guaranteeing the provision of social services, especially health care and education, constitute a responsibility of the economy as well. 2010 BUDGET FINAL ACCOUNTING The Minister of Finance and Prices, Lina Pedraza Rodríguez, explained that the deficit rose to 2.29 billion pesos, which represents 3.6% of the gross national product. As she outlined, one of the significant factors contributing to the imbalance between expenditures and income, was the need to considerably increase bank funding to assure the payment of workers in enterprises experiencing losses. She also emphasized that the state budget must assume almost 40% of Social Security costs. She likewise referred to the comprehensive audit conducted for the first time, in 2010, within entities supported by the state budget. This covered all provinces and the special municipality of the Isle of Youth, five state central administration bodies and the Ministry of Finance and Prices, which did not receive a satisfactory report. Translated by Granma International |