To allocate funds for the construction and reconstruction of agricultural facilities (livestock farms and complexes, fish farms, milking parlors and apiaries) before their construction, and not after - such an initiative was voiced during the discussion of proposals for the draft Law of Ukraine "On Amendments to Certain Laws of Ukraine on Improving State Support for Agricultural Producers" by the UAC Deputy Chairman Mykhailo Sokolov.

"We do not have this kind of state support in the country, when we allocate funds for construction before construction begins. However, if we turn to the practice of the European Union, they approve the project and allocate funds for its construction before it starts. And it turns out that a person who does not have enough money to start construction and create a new facility, gets this opportunity. And in the European Union, this is the main government program to support the construction of new enterprises. We have the opposite: we build (if there is money for it) and then we receive compensation. We propose to change this approach and provide an opportunity to do it as the European Union does," said the UAC Deputy Chairman.

According to Mykhailo Sokolov, this will make the situation more predictable for those who apply for state support. After all, they will understand from the beginning how much money they will receive. This will increase the opportunities for start-ups or small businesses that do not have the funds to finance the construction and then receive compensation.

"Such an initiative improves budget planning, however, requires some organizational changes. First of all, the project must be made and it is made at the expense of the developer - the person who applies for state support. Then a decision is made, funds are allocated in the amount allowed by the budget, and then construction begins. And this is better, because we will not face a situation where someone has built something, expects compensation of 30% or 50%, and receive, for example, 15%. This process is easy to be controlled. After all, the bank does not give money even to those who asked for support, but to those who did the work. And if the funds are used improperly, there is a responsibility," the expert explained.

Discussions on the UAC proposal continues.

We will remind, the Verkhovna Rada approved the state budget for 2022. The UAC experts analyzed what expenditures are planned for the agricultural sector.

Friday, 17 December 2021

 

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