Vietnam - Over 40pct of total state budget expenditures to be spent on agriculture in 2012: Vuong Dinh Hue

The state budget’s spending growth for agriculture and rural areas has been always higher than the average budget expenditure whereby the spending increase in 2010 was 31% and it is estimated to be 34.7% in 2011, Minister of Finance, Vuong Dinh Hue, reported to the National Assembly (NA) on late November 23.

Total spending on agriculture, farmer and rural areas including government bonds in 2009 reached 35.9% of the total state budget spending, 39.3% in 2010 and it is estimated to be 39.8% in 2011.

As per the plan for 2012 approved by the NA, government will spend 40.9% of the total state budget expenditures including G-bonds. Of which, direct spending via budget channel would be 343.108 trillion dong, direct spending for agriculture, farmers and rural areas at 119.48 trillion dong, spending via central agencies at 9.138 trillion dong, targeted support from the state budget for localities at 87.633 trillion dong, direct spending related to agriculture, farmers and rural areas at 166.883 trillion dong and G-bond funds would be allocated 24.8 trillion dong.

In 2012, the NA also approved the capital allocation plan of 1.2 trillion dong for insurance program for agriculture and rural areas, increase the spending on 62 poor districts from 2.05 trillion dong (in 2011) to 3.05 trillion dong in 2012, forest development and protection program from 715 billion dong (2011) to 1.127 trillion dong, aquaculture program and livestock from 475 billion dong (2011) to 790 billion dong and resettlement program from 345 billion dong to 445 billion dong.

In addition, the state budget will also give priorities for irrigation works, scientific research and clearing for the credit interest rate difference for poor households.

Regarding the pilot insurance program for agriculture in 2011-13 period, the program will focus on natural disaster risk and epidemic disease risk.

VietBiz24

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