Lithuania cuts agriculture funding

  • 1999-07-15
VILNIUS (BNS) - Lithu-anian Agriculture Minister Edvardas Makelis ordered the suspension of the transfer of funds to the agricultural offices of Lithuania's 44 districts.

This way, funding of investment programs and other needs will be stopped due to what the government said was the need to save money in the Rural Support Fund.

The government ordered that the money from the Rural Support Fund be first of all earmarked for subsidies for purchased milk and other agricultural produce, and promotion of food exports.

The Agriculture Ministry said funding of rural programs has ceased until revenues from sugar excise duty are received. As of now, the government has failed to collect about 60 million litas ($15 million) of the tax revenue.

According to information provided by the Agriculture Ministry, the government failed to pay 25.3 million litas in subsidies to farmers as of June 30, including 11 million litas for milk purchased in May.