Skopje, 4 December 2021 (MIA) – The 2022 agriculture budget has a development component with a focus on capital water management investments. The total budget stands at Mden 9.13 billion, which includes the basic budgets of the Ministry of Agriculture, Forestry and Water Economy, the Payment Agency, the Agency for Promotion and Development of Agriculture, the Food and Veterinary Agency, the State Inspectorate for Agriculture, the State Inspectorate for Forestry and Hunting, and the National Hydrometeorological Service. The basic budget of the Agriculture Ministry for 2022 is projected at Mden 2.025 billion, which will provide continuity in the implementation of measures and policies for the development of the agricultural sector. Deputy Minister of Agriculture, Forestry and Water Economy, Trajan Dimkovski, told a press conference on Saturday that the 2022 agriculture budget has increased by Mden 255.7 million compared to 2021, adding that these funds are mainly directed towards water economy. The largest amount of Mden 1.27 billion is intended for the Water Economy Directorate. “For several years now, we’ve been highlighting the importance of providing conditions for the development of stable, competitive and modern agricultural production. That’s not possible without water. That’s why in 2022 we continue with investments in water management, which include continuation of the projects started and construction of new systems,” said Dimkovski. He expects the construction of the Konjsko dam to be completed next year, and to continue the construction of the dam Rechani and Rechica - Raven according to planned dynamics and agreements signed. Financial support for Lisiche and Zletovica hydro systems will continue, as well as the third phase of the South Vardar valley, which includes construction of the South Vardar irrigation system and will be part of the budget irrigation program for North Macedonia financed by KfW Bank. Dimkovski announced a new project for 2022, i.e. an irrigation program for North Macedonia in the amount of Mden 10 million. The funds will be used to launch a project on rehabilitation and construction of four irrigation systems within the river basin of Vardar: Lisiche, Konjsko, Pepelishte and South Vardar hydro systems, third phase financed with a loan from KfW Bank and budget participation. The remaining funds of the agriculture budget are intended for investments in agriculture and rural development, in the amount of Mden 279 million, for the forestry sector in the amount of Mden 223 million, of which Mden 197 million for the forestry police, Mden 28 million for the forestry and hunting program. “Mden 20 million is planned for the expanded reproduction of forests program, which will be used for reforestation of bare and erosive lands in the country and private property. Implementation of monitoring measures to improve the quality and structure of forests with an emphasis on reforestation of burned areas. In this way, the Agriculture Ministry takes an integral approach to the preservation and renewal of forests,” Dimkovski pointed out. He noted that most of the agriculture budget funds have been allocated to the Agency for Financial Support to Agriculture and Rural Development, i.e. Mden 6.14 billion of which Mden 5.6 billion are for financial support in agriculture and rural development, i.e. Mden 4.5 billion are for subsidies and Mden 1.15 billion for capital investments in rural development. As regards other institutions that are part of the agriculture sector, Dimkovski said that the Food and Veterinary Agency will have a budget in the amount of Mden 623 million in 2022, whereas the National Hydrometeorological Service will have over Mden 94 million, same as in 2021. “The 2022 agriculture budget has a development component with a focus on capital water management investments. What’s new and different than the 2021 budget are funds intended for opening of small businesses, startup projects with grants up to EUR 10,000, then a doubled amount for the measure "Rural Woman" from EUR 3,000 to EUR 6,000 non-refundable grant and demarcation of funds from the IPARD Program worth Mden 351 million, aimed at increasing national co-financing for primary production below EUR 10,000,” Dimkovski said, adding that he expects the agriculture sector to continue developing even in times of a global health and economic crisis.