The parliamentary group of the Communists and the Socialists submitted a legislative proposal to increase the national agriculture development and rural subsidization fund. Under the bill, the annual allocations from the state budget, together with other sources intended for the purpose, will represent at least 4% of the state budget expenditure, IPN reports.
The bill authors said the state budget funds intended for the development of agriculture and rural areas should be raised as the applicants for subsidies increase in number and not all the requests can be satisfied. They make reference to the Agency for Intervention and Payments in Agriculture’s report on the financial support provided in 2021, noting that this points to a financial crisis with an impact on the agricultural sector and rural development.
According to the report, 773.9 million lei was earmarked for post-investment subsidization in 2021, while the commitments assumed before the agricultural producers that asked for financial support in 2020 represent 820 million lei. The lack of the necessary financial resources leads to the underdevelopment of the agricultural sector, including the agro-industrial sector, says the informative note to the bill.
The Communists and the Socialists suggest that the new legal provisions should take effect on January 1, 2022.