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Azerbaijan doubles purchase of non-financial assets for agriculture and forestry

Finance Materials 23 May 2020 21:33 (UTC +04:00)
Azerbaijan doubles purchase of non-financial assets for agriculture and forestry

BAKU, Azerbaijan, May 23

By Eldar Janashvili – Trend:

The spending on agriculture, forestry, fishing, hunting and environmental protection has increased in Azerbaijan by 80.3 million manat or $47.2 million (6.4 percent) in 2019 year on year, amounting to 1.33 million manat ($780,000), which accounts for 5.5 percent of all expenses, Trend reports referring to the report of the country’s Ministry of Finance on budget execution in 2019.

The major part of the expenses (96 percent) accounted for agriculture with 823.7 million manat ($484.5 million), an increase by 120.4 million manat ($70.8 million) year on year (17.1 percent).

The remaining 34 million manat ($20 million) (4 percent) accounted for spending on environmental protection (14 million manat or $8.2 million), on forestry - 10.8 million manat ($6.3 million), on hydro meteorological activities - 7.3 million manat ($4.29 million), on fishing and hunting - 1.8 million manat ($1.06 million).

In accordance with the economic classification (without capital investments), 109.9 million manat ($64.65 million) accounted for wage, which is 7.5 million manat or $4.4 million (7.3 percent) more than in 2018. Yet 285.3 million manat ($135.8 million) accounted for purchase of goods, work and services, which is 38.7 million manat or $22.76 million (20.1 percent) more than in 2018.

Around 430.3 million manat ($253.12 million) were allocated for subsidies and current transfers, which is 44.2 million manat or $26 million (11.4 percent) more compared to 2018. Meanwhile, 100,000 manat ($58,820) accounted for pensions and social benefits, 56.1 million manat ($33 million) – for other expenses, including overhaul and reconstruction of production facilities, rental and banking costs.

Spending on non-financial assets doubled to make up 30.3 million manat ($17.82 million) versus $15.7 million manat ($9.24 million) in 2018.

Furthermore, during 2019, 328.9 million manat ($193.47 million) was allocated from the state budget for the normal operation of reclamation and water management facilities, intensive agricultural development, modernization of the reclamation system, using new irrigated land for sowing, introduction of new progressive irrigation and drainage methods, as well as for measures to combat mudflows and flood waters.

The funds allocated from the state budget were also used to combat plant pests, prevent diseases among livestock and ensure food security.

For the aim of state control in the field of plant protection, the use of pesticides, biological products and other plant protection products, the State Phytosanitary Control Service under Azerbaijan’s Ministry of Agriculture allocated 1.1 million manat ($650,000) to ensure the protection of livestock in the country from various diseases and their treatment, protection of the population from diseases common to humans and animals, from infectious diseases that can penetrate from other countries.

In order to control the necessary veterinary and sanitary quality of animal products and raw materials, the State Veterinary Service under the Ministry of Agriculture allocated 8.8 million manat ($5.18 million), and 419.4 million manat ($246.71 million) – to implement measures for ensuring food security in the country.

In general, 1.75 billion manat ($1.03 billion) was spent on housing and communal services, fuel and energy, agriculture and forestry, fishing, hunting and environmental protection, transport and communications, as well as economic activity, which amounted to 7.2 percent of total expenditures of the state budget.

(1 USD = 1.7 AZN on May 23)

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