Indicator 2.a.1 - The agriculture orientation index for government expenditures
The Agriculture Orientation Index (AOI) for Government Expenditures is defined as the Agriculture Share of Government Expenditures, divided by the Agriculture 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. This indicator will measure progress towards SDG Target 2.a.Target 2.a
Increase investment, including through enhanced international cooperation, in rural infrastructure, agricultural research and extension services, technology development and plant and livestock gene banks in order to enhance agricultural productive capacity in developing countries, in particular least developed countries.
Indicator 2.a.1: Progress Assessment
Impact
Government expenditure data gives potential for improved food security, reduced inequalities, inclusive growth and the creation of decent jobs.
Key results
While government spending on agriculture has increased in recent years in nominal terms, the agriculture orientation index (AOI) declined from 0.50 in 2015 to 0.45 in 2021.
Government expenditures is one of the main sources of investment in the agricultural sector, fostering an improvement in sector efficiency, productivity and income growth by increasing physical or human capital and/or reducing intertemporal budget constraints.
Between 2015 and 2021, nominal public spending on agriculture showed an increasing trend globally. It recorded an all-time high of USD 700 billion in 2021. In that year, the COVID-19 pandemic affected public spending in general, and spending on agriculture in particular. As a result, even though nominal public spending in agriculture increased over the period, agricultural spending as a share of total public expenditure decreased.
Elearning
Multimedia
SDG 2 – Indicator of public investment in agriculture
01/01/2019
An overview of the 2030 Agenda for Sustainable Development and the importance of monitoring the 169 targets associated with the 17 Sustainable Development...
Tracking progress on food and agriculture-related SDG indicators (2022)
01/09/2022
Tracking progress on food and agriculture-related SDG indicators offers detailed analyses and trends on selected indicators for which...
Capacity development
9/ 10
2023
20/10
2023
In-person Course on Government Finance Statistics (GFS), Abu Dhabi
09/10/2023 - 20/10/2023
The International Monetary Fund (IMF) in collaboration with the Arab Monetary Fund (AMF) delivered in-person training on Government Finance Statistics (GFS) and the compilation of the Classification of the Functions of Government (COFOG) for 15 Arab countries in Abu Dhabi, United Arab Emirates.
Methodology
Tier: I
Data
Data collection
- Annual questionnaire on government expenditure for countries
- Guidelines for responding to the FAO Questionnaire on government expenditure on agriculture and related categories