Cuba Spends Half of Budget on Social Needs

July 25, 2018 Taxation in Cuba

Cuba tax revenuesHAVANA – Cuba has spent at least half of its annual budget on social and education programmes, despite continued economic and fiscal setbacks.

Over the weekend the Finance Minister of Cuba Lina Pedraza announced that over the previous financial year, the government had spent more than half of all tax revenues on education, healthcare, and social welfare.

In total, approximately CUC 10.7 billion was spent on public health care and social welfare programs for the year, while an additional CUC 8.1 billion was spent on education on the island.
The total tax revenues for the year amounted to approximately CCU 36.9 billion.

Approximately 74 percent of all taxes collected came from the taxation of incomes of state-owned companies.

However, Cuba’s increasingly important private sector has also paid its dues, accounting for approximately 11 percent of all taxes earned during the year.

Budgetary revenues for the year were approximately 3 percent higher than expenses.

The Finance Minister noted that the execution of the budget has once again been hampered, and attributed some of the blame to US sanctions, a long-standing drought, a lack of oil, and the negative impacts of Hurricane Irma.