Majority of Cuban Budget Allocated to Basic Sectors

Sixty-six percent of current expenditure for budgeted activity in Cuba for the coming year will be allocated to sustain, strengthen, and perfect free public services such as health, education, culture, sports, and social assistance and security.

Presenting the draft state budget for 2026 today at the Sixth Ordinary Session of the National Assembly of People's Power (ANPP), in its Tenth Legislature, Vladimir Regueiro Ale, Minister of Finance and Prices (MFP), reiterated that the aim is to guarantee collective well-being, protect the most vulnerable, and foster the full development of every citizen's capacities.

Before Miguel Díaz-Canel Bermúdez, First Secretary of the Central Committee of the Communist Party and President of the Republic, the minister explained to deputies gathered at Havana's Convention Palace, and via videoconference, that financial resources will be mobilized to cover total expenses amounting to 550.59 billion pesos.

This represents a six percent growth, he stated, after referring to a complex economic scenario characterized by inflationary pressures, energy limitations, growing demands for social protection, the need to stimulate national production and exports, and the impact of the U.S. blockade.

Under these conditions, according to the MFP head, the state budget becomes a financial support to ensure the realization of the Economic Plan, as necessary resources are allocated to fulfill its fundamental goals.

"It is the main tool with which we materialize the political will of the Cuban state to build an increasingly just, equitable, and supportive society," expressed Regueiro Ale.

Public health is allocated 76.756 billion pesos, representing 21 percent of budgeted activity expenditure; and education receives 71.983 billion pesos, 20 percent of the total.

For the protection of retirees and workers through the Social Security system, 80.526 billion pesos are allocated, which is 20.182 billion more than planned for 2025.

Meanwhile, the Social Assistance Program will receive 5.981 billion pesos to ensure the economic protection of family units and individuals in vulnerable situations.

The MFP Minister also highlighted that the state budget will contribute to the comprehensive strengthening of the Science, Technology, and Innovation system.

Regarding investments, and in coherence with the economic plan, it will finance 57.993 billion pesos, primarily in infrastructure projects in the energy, water supply, public health, education, tourism, and housing sectors, among others.

Furthermore, gross revenues of 484.121 billion pesos are planned—an 8 percent growth compared to the 2025 estimate—representing an increase of 36.072 billion pesos in collections.

The planned revenues guarantee the financing of 88 percent of the total projected expenses, which represents a recovery of this indicator and would mark an upward trend compared to the two preceding fiscal periods.

In this regard, the minister emphasized that for the coming year, tax adjustments will be implemented to enhance revenue collection. Non-state forms of management are expected to generate revenues exceeding 99.659 billion pesos, a 12 percent growth.

"But to guarantee compliance with the established revenue targets, it is imperative to comprehensively strengthen fiscal management and control," Regueiro Ale told the deputies.

He warned that the projected budget result for 2026 shows a negative balance between revenues and expenses—a deficit amounting to 74.5 billion pesos, similar to the estimate for 2025.

"Therefore, overcoming the fiscal deficit during the 2026 budget execution will be consolidated as a strategic objective of the first order, which requires greater control of resources and of expenses in accordance with the proposed social objectives," he stated.

Reporting on the implementation results of the Government Program to correct distortions and revive the economy, Manuel Marrero Cruz highlighted that the reduction of the fiscal deficit continues as a positive trend, with an estimated achievement of 84.1 percent of what was planned.

"This result is obtained thanks to over-fulfillment in revenue collection and more efficient control of expenses," he said.