As part of the Government’s projections to correct distortions and boost the economy, and taking into account the high level of inflation in recent years, actions were recently approved aimed at containing the expenses incurred by state entities in their economic relations with non-state forms of management.
The Ordinary Official Gazette No. 57 published Resolution No. 209, dated June 25, 2024, of the Minister of Finance and Prices (MFP), which establishes that state entities, in the economic contracting process with non-state management forms, for the acquisition of goods and services, agree on prices and rates whose maximum profit rate does not exceed 30 percent of the total costs and expenses.
It also refers to the amount corresponding to the application of taxes on sales and services.
The rule will come into force on the 1st. of July and empowers the provincial and municipal Administration councils to approve the prices and maximum rates of the goods and services that they select from among those acquired by state entities from the non-state sector, taking into account the particularities of each territory, according to a note from the Cuban News Agency.
In this regard, Vladimir Regueiro Ale, Minister of Finance and Prices, stated that Resolution 209 is the legal expression or implementation of one of the Government’s projections related to reviewing the entire order of regulations between the state and non-state sectors.
He stressed that it also has to do with containing price levels, which have marked growth and inflation; it is a measure with a scope on the relations of the
budgeted and business sectors in the acquisition of goods and services from the non-state sector.
We are talking about a profit margin on prices and rates, a significant, reasonable and beneficial level of profit for those forms of non-state management that provide a service, sell products or even supply inputs to state companies and budgeted units.
According to the Minister, in recent times there has been a marked growth in payments made in the state sector towards non-state forms of management, and this has not always been supported by the regulations that in contractual matters are established in our country.
We are referring to the tender, to the evaluation of the best offers based on a market study where the state or non-state offeror competes under similar conditions.
The head of the MFP pointed out that in the administration of these resources there have been weaknesses, limitations in the use of that budget that we all know is applied with restrictions, and is done to protect prioritized social programs in our country.
