Analysis of state of implementation of state support-2018 and the offers from the UAC for its improvement

 

The state of execution of budget programs, provided in support of agro-industrial complex

1. State support to the livestock sector

Direction

Plan for 2018/2019

(million UAH)

Completed on 08.08.18 (million UAH)

Completed %

Partial reimbursement of the cost of construction and reconstruction of objects

1,200

200

 

16 %

 

Partial reimbursement of the cost of breeding animals purchased for further reproduction

300

0

0 %

Special budget subsidy for raising young cattle

700

6,7

 

0,95 %

Special budget subsidy for keeping cows

500

259

52 %

Compensation of the cost of facilities financed by bank loans

1100

1,9

 

0,17 %

Partial compensation of the interest rate on bank loans

200

 

0,2

 

0,1 %

 

2. Financial support of agricultural producers

Plan for 2018/2019

(million UAH)

Completed on 20.08.18

(million UAH)

Completed

%

Plan for 2019

(million UAH)

945

196

 

20 %

1,382

The funds are fully foreseen to reduce the cost of farming equipment. There is no funding for "quasi-accumulation of VAT" in 2018 and 2019

 

3. «Farmer billion»

Direction

Plan for 2018/2019

(million UAH)

Completed on 20.08.18

(million UAH)

Completed %

Plan for 2018

(million UAH)

Financial support for the development of farms.

1,000

1,6

 

0,16 %

 

800

Granting loans to farms

43

data is not available

data is not available

245

 

 

4. Financial support of measures in the agro-industrial complex by reducing the cost of loans

Plan for 2018/2019

(million UAH)

Completed on 20.08.18

(million UAH)

Completed %

Plan for 2018

(million UAH)

66

15

 

23 %

127

 

Low execution of the program due to the discrepancy of business entities with the admission criteria — the amount of interest on the use of loans and the amount of fees for the provision of other banking services associated with this loan does not exceed 30 percent per annum

 

5. State support for the development of hops, the laying of young gardens, vineyards and berries and their supervision

Plan for 2018/2019

(million UAH)

Completed on 20.08.18

(million UAH)

Completed %

Plan for 2018

(million UAH)

300

76

 

25 %

400

 

 

In general, the State Budget provided 6,311 billion UAH in support of the agro-industrial complex

 

 

As of August 20, 2018

only 12% were completed (777 billion UAH)

 

 

The situation in the part of the state support of the agrarian sector is catastrophic, because in the history of Ukrainian agribusiness has not yet been such a low level of use of allocated funds. The reason for this is the redistribution of subsidies to those areas that agrarians are not in demand, and, conversely, the refusal to finance the necessary directions and programs. In addition, there are various administrative obstacles to obtaining funds from farmers.

In fact, the government's proposed draft budget for 2019 suggests repeating the situation this year, as already mentioned above does not change anything.

Friday, 11 January 2019

 

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