Agriculture budget increases to $68 mln

TIRANA, Dec. 8 – The 2011 budget on agriculture, food and consumer protection will be the biggest of the past six years at 68 million dollars, increasing by 36 percent or 26 million dollars compared to the revised 2010 budget, government says. However, this important sector to the Albanian economy will continue being the least government-funded among the other four priority sectors of education, health, defence, and transport.
Finance Ministry data show the 2010 budget on the agriculture ministry was cut to 0.41 percent of the GDP to 5.05 billion lek (50 million dollars) in mid-2010, down from 0.59 percent of the GDP in the previously approved budget.
The 2011 draft budget on the Agriculture Ministry foresees a total of 6.8 billion lek or 0.51 percent of the GDP. Expenditure for this ministry in 2011 has increased by 1.8 billion lek compared to the 2010 revised budget.
Government expects the GDP on this vital sector of the Albanian economy to climb to 0.63 percent of the GDP only by 2013.
The 2011 budget priorities for agriculture include the strengthening of food safety and consumer protection, irrigation and drainage infrastructure and support to domestic production through subsidies. The ministry says funds allocated to these priority areas have significantly increased by up to 30 percent compared to the 2010 budget. Several food safety labs will be accredited during the first half of 2011 under a 3 million dollar project to strengthen the network of labs on the safety of food, livestock, and flora.
A 7 million dollar project will also be implemented to vaccinate and brand sheep and goats.
Irrigation and drainage systems in 2011 will receive 1.76 billion lek (17.5 million dollars), 23.5 percent more compared to this year.
A major World Bank funded 40 million dollar project is expected to start being implemented next year to prevent flooding and rehabilitate water infrastructure, especially in the problematic northern Albania, which has suffered severe flood damage five times during this year. Some 20 dams will be rehabilitated to improve their safety under the project which foresees 10 million dollars of investments in 2010.
Farmers will also continue receiving subsidies, whose levels have increased by 30 percent reaching 1.26 billion lek. The national olive tree programme will continue being at the centre of the subsidies. Subsidy support will also be provided to fruit tree cultivation, solar greenhouses, olive oil processing, modern irrigation, bio products and milk.
The Agricultural and Rural Development Agency (Payments Agency) will continue receiving state support until the European Commission accredits it as a reliable agency for the management of future EU funds.
The Agriculture, Food and Consumer Protection Ministry says it implemented only 54 percent of the budget projected on development projects during the first nine months of this year. In a report published on the monitoring of its budget, the ministry says it had executed only 2.9 billion lek (30 million dollars) during the first nine months of this year, slightly more than half of the total 5.4 billion lek under the reviewed 2010 budget.
The agriculture sector, employing the majority of people in rural areas where all people are considered self-employed because of possessing land, continues to be one of the main sectors of the economy, generating about 18.5% of GDP (in 2008) and 48.3% of total employment. Around 500,000 people work in agriculture, of whom 55% full time and 45% part time. Labour productivity in agriculture is only 30% of labour productivity in the rest of the Albanian economy and 20% of the EU. More than 50% of the total Albanian population lives in the rural areas where agriculture is the main economic activity, said the European Commission in its latest report.