The Ministry of Agriculture spent approximately 1.9 billion tenge on digitalisation in 2024.
The editorial team of FBRK analysed the department's largest public procurements and found that last year the bulk of expenditure was on software and IT infrastructure.
The absolute leader among all the Ministry of Agriculture's procurements was services for organising educational events in the agro-industrial complex (AIC).
The project uses modern IT solutions: an internet portal, a mobile application and Telegram bots for training and consultations in the agricultural sector. The cost of the services was approximately 344.2 million tenge.
In second place was the purchase of a hardware and software system for 306.3 million tenge. Third place went to the technical maintenance of the corporate network and data transmission system — approximately 295.2 million tenge.
The ministry allocated significant sums to supporting information systems. For example, the department allocated 290.4 million tenge for information and technical support for state bodies. These funds went towards maintaining the comprehensive system 'Unified Automated Management System for AIC Sectors' (UAMS), which includes several key modules.
These include the 'Veterinary Safety' module, which handles the issuance of veterinary certificates and certifications, the 'Plant Quarantine' system for monitoring the movement of quarantined products, as well as the agricultural machinery registration module.
In addition, approximately 193.5 million tenge was spent on administrative and technical support for the hardware and software system.
A separate line item was expenditure on software licences — 184.5 million tenge. The subsidy system, without which state support for farmers is impossible, cost 141.6 million tenge. Another 127.8 million tenge was spent on purchasing a network commutator.
Notably, the only 'non-digital' procurement on the list of the largest — transport services using an official car — was the most modest, at just 100.4 million tenge.
If all costs for IT infrastructure, software and their maintenance are added up, the sum is substantial — approximately 1.9 billion tenge.
On the one hand, modern technologies are indeed necessary for effective management of the industry. On the other hand, while the Ministry of Agriculture is busy with digitalisation, farmers in Northern and Eastern Kazakhstan complain about unpaid state subsidies and low incomes from the harvest. As of today, the state owes farmers 359 billion tenge in subsidies.
A paradoxical situation is emerging: with massive investments in digitalisation, the basic needs of agricultural producers remain unmet.
To recall, in December 2024, the Supreme Audit Chamber (SAC) presented disappointing results of an audit of the agricultural sector, noting systemic problems that reduce the effectiveness of state support, despite significant budget expenditures.
Furthermore, in April it emerged that overpayments totalling 569 million tenge were discovered in the ministry's public procurements.
To be continued...