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The purpose of this indicator is to enhance the agriculture sector’s productive capacity and therefore improve food security, reduce inequalities, increase inclusive growth and the creation of decent jobs.

This indicator measures government spending on agriculture, which includes spending on sectoral policies and programs; soil improvement and control of soil degradation; Irrigation and reservoirs for agricultural use; animal health management, livestock research and training in livestock; marine / freshwater biological research; afforestation projects and other forestry projects; etc. Expenditure on these agricultural activities helps increase sector efficiency, productivity and income growth by increasing physical or human capital and / or reducing intertemporal budget constraints.

Ministry of Agriculture

Ministry of Agriculture

Annual

US Currency

An Agriculture Orientation Index (AOI) greater than 1 reflects a higher orientation towards the agriculture sector, which receives a higher share of government spending relative to its contribution to economic value-added. An AOI less than 1 reflects a lower orientation to agriculture, while an AOI equal to 1 reflects neutrality in a government's orientation to the agriculture sector.

The Agriculture Orientation Index (AOI) for Government Expenditures is defined as the Agriculture share of Government Expenditure, divided by the Agriculture value added share of GDP, where Agriculture refers to the agriculture, forestry, fishing and hunting sector. The measure is a currency-free index, calculated as the ratio of these two shares. National governments are requested to compile Government Expenditures according to the Government Finance Statistics (GFS) and the Classification of the Functions of Government (COFOG), and Agriculture value added share of GDP according to the System of National Accounts (SNA).

Since this indicator is based on national accounts data and total central government expenditures, it does not allow for disaggregation by demographic characteristics or geographic location.

This indicator helps the Ministry of Finance and Ministry of Agriculture to monitor the orientation towards the agriculture sector, which receives a higher share of government spending relative to its contribution to economic value-added.

Since the numerator of this data is based on administrative sources, there is no confidence interval or standard error associated with government expenditure data. For the denominator, national accounts data typically do not provide any standard error or confidence interval information. The key limitation with this indicator is that it considers only central government expenditure. To the extent that some countries may have heavier intervention in agriculture by sub-national governments, this will not be considered.

Since the numerator of this data is based on administrative sources, there is no confidence interval or standard error associated with government expenditure data. For the denominator, national accounts data typically do not provide any standard error or confidence interval information.

All the metadata shown in this document was gathered from United Nation Statistics Division. The metadata was extracted from https://unstats.un.org/sdgs/metadata/ .