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Expenditures in Agriculture Sector VS Results

Expenditures in Agriculture Sector VS Results

Having won the 2012 parliamentary elections, Georgian Dream named agriculture sector as a key priority direction. Billionaire Bidzina Ivansihvili stressed that he would invest about 1bln GEL in the sector development.

Over the past 5 years, many state programs were implemented in agriculture. Some of them do not function today, while other programs continue operation.

The Business Course has collected information about key programs implemented in agriculture field over the past 5 years.

According to the state budget, 628.892mln GEL has been spent on 11 state programs since 2013.

As a result: agriculture ratio in GDP has risen slightly. Agriculture sector output has also increased in unimportant volumes.

The budget allocations are as follows:

Preferential agro credit

2013 – 6,586 thousand GEL
2014 year – 42,800 thousand GEL
2015 – 34,473 thousand GEL
2016 – 48,900 thousand GEL
2017 plan – 47,000 thousand GEL
Total 179 million 759 thousand GEL

Measures to promote small farmers’ spring works

2014 year – 50,000 thousand GEL
2015 – 46,000 thousand GEL
2016 – 51, 300 thousand GEL
Total 147 million 300 thousand GEL

Agroinsurance
2014 year – 10,000 thousand GEL
2015 – 4,796 thousand GEL
2016 – GEL 7,200 thousand
2017 – GEL 7,000 thousand
Total 28 million 996 thousand GEL

Promotion of apple harvest realization

2014 – 4,000 thousand GEL

Measures to promote tangerine harvesting

2014 year – 2,000 thousand GEL
2016 – 925 thousand GEL

Total 2 million 925 thousand GEL

Vintage Promotion Measures:
2014 year – 31,000 million GEL
2015 – 60,700 thousand GEL;
2016 – 36,000 thousand GEL
2017 – 16,000 thousand GEL
Total 143 million 700 thousand GEL

Proceed to the future

2015 – 1,788 thousand GEL
2016 – 6,861 thousand GEL
2017 Plan – 7,000 thousand GEL
Total 15 million 649 thousand GEL

Georgian tea

2016 – 67 thousand GEL
2017 – 400 thousand GEL
Total GEL 467 thousand

Covering loan and lease liabilities of agricultural machinery

2015 -26,000 thousand GEL
2016 – 22,000 thousand GEL
2017 plan – 20,000 thousand GEL
Total 68 million GEL

Support for agricultural cooperatives

2013 year – 227.9 thousand GEL
2014 year – 801.5 thousand GEL
2015 – 2,570 thousand GEL
2016 – 2,500 thousand GEL
2017 plan – 4,870 thousand GEL
Total 10 million 969 thousand GEL

Co-financing of agricultural product processing industries

2013 – 22,400 thousand GEL
2017 – 5,000 thousand GEL
Total 27 million 400 thousand GEL

It is worth noting that starting the inauguration of state agriculture programs, agrarian sector real growth paces have not risen considerably. For example, in 2013, when the preferential agro credit program started, agrarian sector real growth pace was 11.3%, but later the growth marked 1.5% on average, while the sector did not grow in 2016:

Agrarian sector real growth paces:
2011 – 8,5%
2012 -3,8%
2013 – 11,3%
2014 -1,6%
2015 – 1,5%
2016 – 0%

At the same time, ratio of agriculture sector in GDP has risen in small volume. Before the project inauguration, the ratio in GDP was 8.6% in 2012, 9.4% in 2013. Later, the indicator changed by only 1%.

Agriculture sector ratio in GDP due to years:

2011 – 8,8%
2012 – 8,6%
2013 – 9,4%
2014 – 9,3%
2015 – 9,2%
2016 – 9,3%

As to Agriculture sector output, this indicator grows year to year in small volumes.

Agriculture sector output due to years:

2011 – GEL2 878 000

2012 – GEL 3 019 000
2013 – GEL 3 394 000 000
2014 – GEL 3 583 000 000
2015 – GEL 3 873 000 000
2016 – GEL 4 221 000 000
2017 – GEL 173 700 000 (two quarters)