The evaluation a state support for agricultural production in Ukraine was implemented

Authors

  • O. Ilchuk ,

Abstract

The gross output of agriculture and its share in Gross domestic product were investigated. It was determined that due to the insufficient level of financial support of production technology the indexes of crop yields and animal productivity are almost 2 times lower than in developed countries.

It was ascertained that the state support for agricultural producers includes expenditures of general and special funds of the state budget and the Special tax regimes for agricultural production in the form of a fixed agricultural tax (FAT), and also a special mechanism for payment a value added tax (VAT).

The analysis of a support for agriculture and performance indicators of the expenditures’ distribution of the State Budget of Ukraine for particular programs to support the development of animal husbandry and crop production for last years was carried out. It was determined that the plan of their financing isn’t being executed.

In addition, a dynamic of support to agricultural enterprises as main economic entities was defined. This support was directed mainly to reduce the cost of loans and purchase of material and technical resources.

The inefficient usage of state budget funds, which are allocated to agriculture support, is primarily due to an existing imperfect mechanism of receiving and distributing of budget funds and because of the contravention of a budget discipline during their usage. The current mechanism of funds allocation from a state budget is bulky and allows the practice's changes as an order of approval as well as funding volumes, which stipulates untimely receiving a state financial support and their inefficient usage.

A distribution of state support for agriculture development has to be executed by the principles of priority, sequence and incentive. Thus money have to be concentrated on several the most important programs, which provide a fast return, and allocate in such terms and volume, which are necessary for a program implementation. In this regard agricultural producers have to know how long and in what scale will provide the financial support by this or that program. In addition the state budget funds' usage has to stimulate a production of such types of agricultural products which are necessary for society at this stage.

The current system of the state budget funds’ usage is first of all oriented to large agricultural enterprises and doesn’t provide their effective usage.

The ways of improving the state support system and increasing of its efficiency were identified.

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Issue

Vol. 7 No. 1-2 (2015): (англ)

Section

Статті

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