Cuba announced July 8 it’ll begin deregulating its state-run companies in 2014, as the country expands its reform from retail stores and farming into more significant territory, said Communist Party top official Marino Murillo.

Speaking to members of the National Assembly, he said the plan for 2014 “has to be different”  adding that of the 136 directives issued for next year, “51 impact directly on the transformation of the companies.”

He explained that companies would keep 50% of profits for recapitalization, minor investments, raises in wages and other activities, instead of handing over all profits to the state and then waiting for permission to spend the money for every item.

“The plan approves for every sector that a businessman does not have to ask permission to make minor investments that if not undertaken could detain a productive process,” Murillo said. “It eliminates administrative barriers to salary payments, which directors of companies can decide on, always and when they have sufficient profits to cover them.”

The new policy comes shortly after Cuba’s admission that 2013 economic growth would be 2.5% to 3% this year down from the government’s prior forecast of 3.6%.

Economy Minister Adel Yzquierdo blamed “foreign pressures, the impact of Hurricane Sandy and the economy’s own inefficiencies.” Sandy caused an estimated 7 billion pesos in damage when it ripped through eastern Cuba last October, destroying buildings, infrastructure and crops.

Meanwhile, the current deficit came to 2.6 billion pesos, or 3.8% of GDP, with 70% of GDP growth coming from domestic trade, transportation and industries.

While Cuba is projected to spend $168 million less on food imports than last year, housing construction by the government remains at very low levels: 13,000 units.

Regarding Cuba’s debt, the government said only that the country was “strictly meeting the commitments of the debt.” As usual, no figures or details were disclosed.

The policy to increase autonomy and deregulate state-run companies is, in part, based on programs already implemented in the provinces of Artemisa and Mayabeque. Companies, which in the past were assigned hard currency for imports, will now be able to use the money to purchase local products.

“If an institution has $200 million to import, and a local producer can produce what it plans to import, this body can directly pay that local producer with the approved funds,” he said.

At the same time state firms that have reported losses for two years or more will be expected to turn a profit or they will downsized, merged with others or closed.

“We can’t make a plan that includes companies like these because the phenomena of having to finance these losses will persist,” Murillo said.

In the past, Cuba financed its budget deficit by printing money, which led to inflation and other disruptions. From now on, 49% of it will be financed through bank credits, and the rest through issuance of paper money.

The role of the banking sector continues to increase. Within the past year, 146,000 credits have been granted, exceeding $900 million.

Indeed, statements made by both Murillo and President Raúl Castro putting emphasis on “social property” and state planning as the founding principles of the system were mostly perceived as official rhetoric. The National Assembly did pass two projects of significance: the Navigation Law on Seas, Rivers and Lakes, and the draft of a new labor code; nationwide debate on these topics is to take place over the next three months.

Both Murillo and Raúl Castro urged an end to Cuba’s complex dual-currency system. They also praised “non-agricultural” cooperatives. But not a word was uttered on the highly anticipated Investment Law, which was supposed to have been passed by now.

Raúl did say that structural changes aimed at greater autonomy for state companies and provincial and municipal governments will continue; these will free the state from non-essential productive activities and allow the national government to focus on Cuba’s long-term economic development.

The president also lamented the “decay of moral and civic values” and blasted ordinary Cubans for defects ranging from stealing cattle and selling goods under the table to the use of obscenities, urinating in the street and heavy drinking in public.

“We have gone backwards in terms of culture and civic responsibility,” he complained. “Fighting back social indiscipline cannot b-come an issue for a campaign, but will demand a permanent movement.”

Raúl added: “We have the duty to correct the mistakes made by us during these five decades of socialism.”

By mid-2014, the Cuban Communist Party is expected to hold another National Conference entirely dedicated to separating the Party from the government, its institutions and its inner workings.

“The Party must lead and control, but not interfere in government activities at any level,” said Raúl. This has been repeated for 40 years but never really implemented. Finally, regarding relations with the United States, Raúl said “we don’t see any will to rectify the Cuba policy [in Washington], not even to eliminate its most irrational aspects.”