Budget expenditures as a component of the budgetary support of the agriculture

Abstract

The article is focused on theoretical and applied problems related tenth budget expenditures in Ukraine and their role in budgetary support of agriculture. Approaches to estimating the budgetary support for agriculture, which allows for evaluating the degree of its regulation are summed up. Analysis of the current mechanisms for budgetary support, of agriculture production in Ukraine is made; problems of public policy in agriculture are highlighted.

A review of various forms of support to agriculture is made: taxation policy, regulation of domestic agricultural market, support of domestic agricultural market infrastructures, protectionist policy regarding agricultural exports and imports. A comparative statistical analysis of the support to agricultural producers and the support to agricultural services in the total support to agricultural sector in Ukraine and selected countries is made. Detailed information is given about the regulatory framework for agricultural sector in Ukraine and the functions of the Ukrainian Agrarian Fund.

Considering the specific circumstances, including heavy effects of the climate conditions, which cause sector-specific risks, budgetary support, to the agricultural sector is an economic imperative realized and implemented by many countries through various forms, methods and instruments. The analysis shores that the existing support for agricultural production in Ukraine is ineffective, unstable, stagnant and imbalanced. Preference has been given to the support of domestic producer, with the rest part of support given to the agricultural services. The rate of consumer taxation in Ukraine exceeds the rate of support: given to domestic agricultural producers, which is an eindence of the inadequate mechanism of market pricing and outflow of funds from the agrarian sector of the Ukrainian economy.