News
07.04.2014
In the new State budget of Ukraine the expenditures for agricultural industry have been reduced by 20%
On March 27, the changes to the State budget of Ukraine 2014 have been made: the profitable part is determined in the amount of 372.9 bln UAH, the expenditure part is 436.8 bln UAH, and the limited amount of deficit is 68.6 bln UAH. The budget allocates for agriculture 1.6% (6.8 bln UAH) from the planned expenditure part, which means reducing of funds up to 1.7 bln UAH or 19.9% compared with the previously approved budget.
Among groups of expenditures of the Ministry of Agrarian Policy and Food of Ukraine, the mostly were reduced the next: supporting of agricultural producers – by 818.8 mln UAH or 45.3%, and management - by 259 mln UAH or 19.8%. Financing of the group "other" expenses is almost completely reduced – by 71.7 mln UAH or 93.7% in relation to the previous State budget 2014. Financing of National Academy of Agricultural Sciences is reduced up to 705.3 mln UAH (-50,3 mln UAH or -6.7%). Expenditures for activities of the Agrarian Fund and a number of programs related to the financing of rural areas have been also reduced.
Actually excluded from the list of expenditures: rehabilitation and recreation of children of employees of the agroindustrial complex; financial support for events in agricultural sector; measures to combat against agricultural pests and plants diseases; organization public exhibitions in the sphere of agriculture; financial support for creation of wholesale markets for agricultural products; organization of activities in fisheries and fishery reproduction, applied investigations in the field of fisheries, breeding in fisheries and reproduction of aquatic living resources in internal water bodies and Azov-Black Sea basin as well as international activities in the field of fisheries.
The previous budget firstly introduced the State support for vegetable growing, which together with hop growing, laying young orchards, vineyards, berries, and supervision of them amounted in allocation of 700 mln USD, but the new law again abolished the support for vegetable growing, and for the other of the above listed categories is allocated 100 mln UAH.
"The share of agricultural industry in GDP of 2013 was 9.1% (132.2 bln UAH), the branch has also ensured 26.9% (17 bln USD) of exports from the country with positive trade balance, which was 8.8 bln USD. The reduction in the volume of funding is explained by the objective factors (necessity of the State budget sequestration), but may affect on the rate of development of certain industries, e.g. gardening. It is important that in such circumstances we avoid the further growing of fiscal pressure on farmers" - concluded Igor Ostapchuk, Expert on agricultural markets of Association" Ukrainian Agribusiness Club” (UCAB).
Association “Ukrainian Agribusiness Club”
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01032 Kyiv, Ukraine
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