Havana, Cuba – The Cuban government is set to gradually eliminate subsidies for basic food items distributed through the ration book system, Prime Minister Manuel Marrero Cruz announced on Wednesday to the National Assembly of People's Power.

The move, which the regime claims is aimed at redirecting subsidies to those most in need, comes amid a severe economic crisis plaguing the country.

During his speech, Marrero indicated that work is already underway to remove subsidies for essential products and warned that this process is "irreversible." The prime minister clarified that the implementation will be gradual and product by product, acknowledging, however, the potential for social tensions. “We have concluded that we must completely eliminate the subsidy on the basic basket, but the issue is complicated because we would not only have to subsidize people in vulnerable conditions. Practically, for most budgeted workers, their salaries would not allow them to cover that difference,” he said.

The official admitted that the measures taken so far have not met citizens' expectations. “We are unsatisfied that we have not made the necessary progress,” he noted, presenting the results of the government plan designed a year ago to mitigate economic distortions.

The current scenario, marked by high inflation and widespread shortages, makes access to basic foods such as rice, sugar, eggs, and bread a challenge, as their cost far exceeds the average salary of the population. 1    

Also on Wednesday, Marrero Cruz announced that the Cuban Telecommunications Company (ETECSA) will increase internet rates starting in 2025.

The prime minister explained that the main purpose of the measure is to generate hard currency, as the implementation of charging in national currency affected the popularity of offers in dollars. Addressing the deputies, the official specified that rates in national currency "cannot continue to be unlimited" and that a maximum consumption will be applied: "From there, whoever wants to spend more will have to pay another price," he indicated.

[Copyright (c) Global Economic Times. All Rights Reserved.]