Agriculture is likely to lose its priority status for budget financing

According to the draft state budget for 2017, overall expenditure on agriculture will be reduced by 16% in 2017. More than half of the allocated funds will be used to pay interest on loans to agriculture, taking into account the pessimistic budget scenario and anticipated cost reductions in the economy. Agricultural enterprises are likely to accumulate losses and to undergo restructuring, those employed in agriculture are likely to reduce in number and most unprofitable enterprises are likely to be transferred to more successful farmers and agro-businesses. Some bad debts of agricultural enterprises will be restructured after their assets are transferred under the Asset Management Agency’s management. The state is likely to continue to reduce its support to agriculture due to the lack of budgetary funds.