Prime Minister Manuel Marrero Cruz has revealed a government initiative to decentralize the approval process for all types of economic entities across the nation's municipalities. This plan is part of the broader Economic and Social Program set for completion by 2026.
The announcement was made during the latest session of the Council of Ministers, as reported by Cuban state television. The meeting, led by Miguel Díaz-Canel and facilitated by Marrero, took place at the Palace of the Revolution.
According to the Prime Minister, in the first half of the year, powers will be transferred to local areas to authorize different economic players, encompassing both state-owned and private initiatives. He mentioned ongoing work on regulatory proposals to decentralize the approval of state-owned micro, small, and medium-sized enterprises (MSMEs) at the municipal level. In the future, it is planned to grant municipalities the authority to establish new companies.
During the gathering, Díaz-Canel emphasized the urgent need to implement changes to Cuba's economic and social model. Among the priorities, he highlighted were business and municipal autonomy, reducing the size of the state apparatus, local food production, shifting the energy matrix, boosting exports, and enhancing partnerships between the state and private sectors.
The President stressed that municipalities must manage foreign direct investment, handle closed currency schemes, and oversee the implementation of government programs within their jurisdictions. He noted that the performance of the business system and local regions will be crucial for achieving macroeconomic stabilization and increasing foreign currency revenue.
The session also included the presentation of an updated government program, renamed the Economic and Social Program of the Government for 2026 following a public consultation process. The Council of Ministers approved the new text, along with an action plan and timeline for its implementation.
The Minister of Economy and Planning reported that the economic situation in January 2026 remained challenging, with unsatisfactory results across several indicators. Nonetheless, authorities assured continued support for over 178,000 families and nearly 64,000 mothers with three or more children, alongside initiatives in more than a thousand communities.
Meanwhile, the Minister of Finance and Prices provided a preliminary report on budget execution as of the end of 2025 and January 2026. He noted that several provinces recorded surpluses and that the fiscal deficit for January was lower than planned. There was also a proposal to allow municipalities to retain a portion of surplus revenue to bolster local development funds.
The Council of Ministers also reviewed amendments to Decree 33 of 2021 on strategic management of territorial development and assessed the performance of the Mariel Special Development Zone, which is highlighted as a potential space for experimenting with economic policy changes and partnerships between state and non-state sectors.
Authorities assert that decentralizing competencies aims to invigorate the economy and empower local areas, amid financial constraints, declining revenues, and ongoing structural challenges affecting the country's production activities.
Key Questions About Cuba's Economic Decentralization
What is the main goal of decentralizing economic approvals in Cuba?
The main goal is to invigorate the economy by giving more power to local municipalities to approve various economic entities, thus promoting both state-owned and private initiatives.
How will municipalities be involved in Cuba's new economic plan?
Municipalities will manage foreign direct investment, oversee closed currency schemes, and control the implementation of government programs within their areas under the new economic plan.
What challenges does Cuba face in implementing these economic changes?
Cuba faces financial constraints, declining revenues, and structural challenges that continue to impact productive activities, posing obstacles to the successful implementation of these changes.