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Economy, finances, management: Topical issues of science and practical activity

space SCIENTIFIC JOURNALS OF VINNITSA NATIONAL AGRARIAN UNIVERSITY

Issue №: 1(41)

Published: 2019.08.01
DOI: 10.37128/2411-4413-2019-1


Description:
The magazine deals with the problems of the agricultural sector of the economy in the context of integration and processes of globalization. Attention is paid to the issues of development of digital economy, rural territories, technologies of enterprise management and organization of accounting, problems of legal support of economic processes, market tendencies of development of various branches of economy. Particular attention is paid to green tourism as a promising segment of the national economy.

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DIRECTIONS OF THE STATE SUPPORT REALIZATION FOR AGRARIAN SECTOR OF ECONOMY IN MARKET CONDITIONS MANAGEMENT

DOI: 10.37128/2411-4413-2019-1-1-2
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PRONKO Liudmyla – Candidate of Economic Sciences, Associate Professor of the Department of Administrative Management and Alternative Energy Sources, Vinnytsia National Agrarian University (21008, Vinnytsia, 3 Soniachna Str., e-mail: pronkoL@ukr.net).

KULYK Natalya – Lecturer of Verkhivka Agrarian College of Vinnytsia National Agrarian University (21008, Vinnytsia, 3 Soniachna Str., e-mail: pronkoL@ukr.net).

Annotation

Any transformational changes depend on the state, namely: measures that should take into account current trends in the development of the domestic market, cooperation with foreign producers, who consider Ukraine as a potential supplier of agricultural products.

The solution of these problems will contribute to the construction and effective functioning of public administration in various areas of the formation and implementation of socio-economic policies. For the development of the agrarian economy, state support should be balanced and take into account the problems of socio-economic development of the state, by improving the system of public administration and adoption of relevant legislative acts.

The main instruments of state support are interest-free budget loans to agricultural producers, tax exemptions, receipts and debt restructuring, partial compensation of expenses for the purchase of agricultural machinery and equipment.

However, the system of state support and regulation of agriculture in Ukraine is deformed and lagging behind civilization development and from European standards.

Today, the expenditures of the State Budget of Ukraine in support of the agrarian sector make up 5-6% of budget expenditures. At the same time, budget support is almost completely offset by the existing disparity in prices. At 100 UAH budget disbursements are 100 UAH of price costs, when in the EU, on the contrary, 100 euro of budget payments to farmers account for 130 euro of price support.

In addition, state support for prices and production is provided to agricultural enterprises, which produce only 40.7% of the gross output of the industry and employ less than a third of able-bodied rural residents. The farmers and the vast majority of farms do not receive such support.

Therefore, questions arise regarding the improvement of price policy, which would restore parity and ensure positive price support for agricultural producers, helped to select the means of support and implementation of ways to exit the agrarian sector from a protracted crisis through the application of measures of state protectionism. Such an approach will help to reduce the level of inequivalence in the agricultural exchange trade with other sectors of the economy and ensure the efficient functioning of agricultural production.

State support to agriculture in Ukraine covers the budget financing of programs and measures aimed at the development of the industry, preferential tax treatment, partial compensation of interest rates for the use of commercial banks loans, write-off of bad debts to the budget, support for expanded reproduction in agriculture and protection of interests of agricultural consumers products.

Unfortunately, today state support in the form of subsidies, subventions and donations is not being implemented effectively. Because agricultural producers either do not receive financial resources due to lack of funds, or receive them with considerable delay in time. This is due to the fact that the budget support programs developed and implemented are often underfunded, and the rules for allocating budget funds, according to the relevant programs, are approved on an annual basis, and therefore change from year to year (i.e. agricultural producers often do not receive support when it comes to them urgently needed).

Thus, state support is a combination of various levers and instruments of preferential financing of the most vulnerable enterprises and branches of agro-industrial complex.

Therefore, it is advisable for agricultural commodity producers to focus on:

- raising the level of production of agricultural products, which will contribute to the growth of livestock feed and increase export potential of the country;

- increase in the production of milk milk;

- reduction of the level of dependence on imports of agricultural products.

The solution of such problems is possible only with the proper state regulation and support of the agroindustrial complexes.

Another important direction for improving the economic mechanism of state support is increasing the availability of loans aimed at increasing financial sustainability of the industry. Agrarians should create the necessary conditions for expanded reproduction with the help of credit resources. At the same time, the scheme of granting preferential loans should be modified.

Indeed, as convinced by world experience - the basis for creating a rational and sustainable, economic and balanced agricultural production is focused state support

Therefore, in order for agricultural production to develop more effectively and to increase its competitiveness, it is necessary to adjust the process of providing state financial support to agricultural producers, to ensure its increase and effective use, in accordance with the principles of a market economy and approaches to state encouragement of agricultural production in other countries. 

The settlement also requires a system of direct state aid to the agrarian sector. Grants and reimbursements from the state budget should primarily be paid to producers of agricultural products, and the main part of the funds should be directed to financial support for programs that are capable of ensuring the sustainable development of the agricultural sector.

Keywords: state regulation, state support, tools, budget funds, development programs, financing, preferential loans, financial

List of references
  1. Gadzalo Y.M., Luzan Yu.Ya. (2017). Suchasni vyklyky modernizatsiyi ahrarnoyi polityky Ukrayiny [Modern Challenges of Modernizing the Agrarian Policy of Ukraine ]. Visnyk ahrarnoyi nauky – Bulletin of Agrarian Science, November, 9-22 [in Ukrainian].
  2. Borodina O.M. (2017). Instytutsiyni zasady zmin derzhavnoyi pidtrymky ahrarnoho sektora Ukrayiny vidpovidno do vymoh SOT [Institutional Principles of Changing State Support to the Agrarian Sector of Ukraine in accordance with WTO]. Ekonomika i prohnozuvannya – Economy and Forecasting, 8, 87-105 [in Ukrainian].
  3. Borodina O.M. (2016). Koryhuvannya polityky derzhavnoyi pidtrymky silskoho hospodarstva Ukrayiny [Adjustment of the policy of state support of agriculture of Ukraine ]. Ekonomika APK – Economy of AIC, 6,55-61 [in Ukrainian].
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  13. Bulat M.А. (2010). Napryamy derzhavnoyi byudzhetnoyi pidtrymky silskoho hospodarstva [Directions of state budget support of agriculture]. Ekonomika APK – Economy of AIC, 3, 46-50 [in Ukrainian].
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  15. Mazur A., Kubai O. (2018). Spatial organization of regional economic development [Spatial organization of regional economic development]. EKONOMIKA. FINANSY. MENEDZHMENT: aktualni pytannya nauky i praktyky – ECONOMICS. FINANCES. MANAGEMENT: topical issues of science and practice, 3, 7-17 [in Ukrainian].
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About journal

Topics of the journal:

051 Economics

071 Accounting and taxation

072 Finance, banking and insurance

073 Management

075 Marketing

076 Business, trade and exchange activities

241 Hotel, restaurant and catering 

281 Public administration

 

Key information:
ISSN (print): 2411-4413
DOI: 10.37128

The journal “Economy, finances, management: Topical issues of science and practice” is included in the "List of Scientific Professional Editions of Ukraine". 

The scientific edition is assigned the Category "Б" in the field of economics in specialties 051, 071, 072, 073, 075, 076, 241, 281

(Order of the Ministry of Education and Science of Ukraine No. 249, March 17, 2020).

The journal “Economy, finances, management: Topical issues of science and practice” has a Digital Object Identifier (DOI)

The journal “Economy, finances, management: Topical issues of science and practice” is indexed in such database as Index Copernicus Value (https://journals.indexcopernicus.com/search/form)

 

The editorial board of the journal is guided by the principles of scientific, objectivity, professionalism, informational support of the most significant innovative researches, observance of standards of publishing ethics.

The purpose of the journal "Economics, finances, management: Topical issues of science and practical activity» is the coverage of leading scientific ideas in the economic, financial and management activities of the sectors of the national economy and the involvement of representatives of the domestic and foreign scientific professional community.

 

Objectives of the journal:

  • publication of research findings on innovation in the economy, financial and management spheres, innovation of production processes;
  • expanding partnerships with international scientific publishing organizations;
  • enhancing the culture of reviewing and annotating published material;
  • adherence to editorial ethics.

 

Article publishing is a paid service. Cost for printing in professional publications in accordance with the Decree of the Cabinet of Ministers of Ukraine of August 27, 2010 No. 796 "On approval of the list of paid services that can be provided by state educational institutions, other institutions of the educational system belonging to state and communal ownership" and the order Rector of the Higher Education University Mazura VA dated March 14, 2018 No. 93 “On setting the cost of printing in professional editions of the University”.

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An additional copy of the magazine with the mailing list costs 450 UAH.

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History of journal:

It was founded in 1997 under the name "Bulletin of the Vinnytsia State Agricultural Institute". In 2010-2014 he was published under the title “Collection of scientific works of Vinnitsa National Agrarian University”.

From 2015 ”Economy, finances, management: Topical issues of science and practical activity” (Certificate of State Registration of Mass Media No. 21154-10954 of PR as of December 31, 2014)

According to the decision of National Council of Television and Radio Broadcasting of Ukraine from 25.04.2024 No. 1337 the scientific journal «Economy, finances, management: topical issues of science and practical activity» has the ID of the Media R30-05171.