Abstract: Years after the agricultural public expenditure review (PER), little progress was achieved towards making the subsidy fund more efficient. The agro-food sector remains critical to meeting Moldova economic and export growth and social cohesion targets. Around 60 percent (2 million hectare) of all land in Moldova is agricultural land, nerveless the land plots are highly fragmentated. Subsidies for agriculture amounted to 0.5 percent of gross domestic product (GDP) in 2017 and their key declared objective is competitiveness enhancement. Moreover, farmers benefit from an exemption to the road tax. Finally, Moldova offers a reduced rate on some basic food items, such as bread and bakery products and milk and dairy products. These expenditures appear regressive as they accrue to the general population and do not improve income distribution. The note brings new insights and complements former findings that used data from 2015.
Publication Year: 2019
Publication Date: 2019-01-01
Language: en
Type: article
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