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Agriculture and Livestock are the two sectors with the highest informality, but also with the highest number of employees.
It is officially accepted that about 80% of the Agriculture sector is full of informality. Out of 350 thousand farmers, only 15% of them are registered with NIPT at the national Business center.
But despite the high level of Informality, Agriculture contributes 20% of Gross Domestic Product. Importantly, this sector employs 40% of the active workforce.
But on the other hand the support that Agriculture receives from the state budget is completely minimal and negligible.
Referring to the 2022 budget, which is considered a difficult year and the government has launched several schemes, the direct support that goes to the farmer is only 0.05% of the budget, or only 26 million euros in total. The entire Ministry of Agriculture receives only 2% of the annual budget, while in the countries of the region the budget of this sector varies from 3.5-4% of the Budget.
“The budget for 2022 is 4.5 billion euros, the Ministry of Agriculture receives 103.5 million euros and 70% of the budget goes to administrative expenses, salaries, etc. and only 26 million euros are provided for direct support for farmers for subsidies,” said Eduart Sharka, Head of the Farmers’ Union.
This minimalist support, which is far from even the countries with smaller economies than the Albanian one, is considered an achievement by the Prime Minister Edi Rama and the Minister of Agriculture Frida Krifca, although the input prices have tripled.
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