With 58 percent of total labour force and 19 percent of GDP the agricultural sector continues to be one of the most important sectors of the Albanian economy
TIRANA, July 26 – Agriculture, which is one of the country’s most important sectors, will suffer the most drastic cut for the remaining of 2010 in the revised budget approved by Parliament last Monday.
The agricultural budget has been reduced to 5.05 billion lek (50 million dollars), down from 7.2 billion lek at the beginning of this year, according to Finance Ministry data. The 30 percent cuts in this sector which continues being one of the least supported, will affect investment projects in different fields.
Capital expenditure on agriculture has been halved to 1.4 billion lek, compared to 3 billion lek in the previously approved budget, according to the revised budget data.
The irrigation and drainage infrastructure is the most affected with total capital expenditure cut to only 647 million lek, down from 2 billion lek previously.
Expenditure on food safety and consumer protection has also been reduced to 197 million lek, down from 265 million lek.
With 58 percent of total labour force and 19 percent of GDP the agricultural sector continues to be one of the most important sectors of the Albanian economy.
About 56 percent of the Albanian population lives in rural areas, where agriculture is the main activity.
Significant cuts have also been made to the Public Works Transports and Telecommunications Ministry, which has had its total budget cut by 17 percent to 42 billion lek, down from 51.7 billion at the beginning of the year.
Infrastructure investments have lowered by 9 billion lek for the rest of the year, to 38.8 billion lek. The biggest cuts have been made in the national roads network whose total capital expenditure have been reduced to 28.8 billion lek, down from 35.4 billion lek.
Significant cuts have also been made to investments in ports and railways where funds have been reduced to 932 million and 50 million lek, down from 1.8 billion and 81 million lek respectively, in the previously approved budget.
Water supply and sewage investments have suffered a slight decrease of 500 million lek reaching 7.7 billion lek.
Significant cuts have also been made to priority sectors such as health and education which have had their budgets cut by up to 12 percent.
Investments in the education system have lowered to 5.2 billion lek, down from 8.5 billion with the higher education suffering the biggest cuts.
The Health Ministry has also had its investments cut by more than half to 2.2 billion lek, down from 5.4 billion lek.
The budget changes which come immediately after a wage and pension hike of 2 to 12 percent, will cut spending by some 39 billion lek (380 million dollars) for the rest of 2010.
Government has also lowered its GDP growth forecast to 4.1 percent, down from an expected 5.5 percent at the beginning of this year, which is still almost twice higher compared to what international institutions such as IMF and the EBRD expect in 2010.
Government officials have said the cuts will not affect ongoing infrastructural projects.
