The Ministry of Finance announced to use some VND370 trillion (USD17.7 billioin) from the State budget and the government bonds to invest in agriculture and rural development in 2012.
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Thus, the investment capital in the agriculture sector increases by 28% against last year, said Minister of Finance Vuong Dinh Hue in a press release on Wednesday.
According to the budget estimate for 2012, some VND344 trillion will be extracted from the State budget and VND26 trillion from government bonds, or 60% of the total government bond value worth VND45 trillion (USD2.15 billion).
The total figure of VND370 trillion is equal to 40.9% of the total State budget. Minister Hue said stabilising and developing agriculture and rural areas are the important foundation for economic growth.
In the capital breakdown, VND120 trillion (USD5.7 billion) will be invested directly in the agriculture sector. Some VND11 trillion will be disbursed through the central investment and maintenance of irrigation projects, agricultural extension and preferential interest rate supporting.
Over VND220 trillion (USD10.5 billion) will be used to implement State policies involving agriculture and rural areas.
In line with the rise in general budget expenditure, spending for agriculture and rural development has a high growth of 21.3% in 2010 and 34.7% in 2011. Therefore, the percentage of agriculture spending over the total expenditure has risen from 35.9% in 2009 to 39.8% in 2011.