Annotation

The article deals with the current state of the organization of state financial support for the agrarian sector of Ukraine’s economy. The main attention is paid to the state financial support of agriculture, i.e. the branch, most requiring such support because of the specifics and features of its activities. The article characterizes modern tendencies and dynamics of development of the branch of agriculture, in particular, its place in the structure of GDP of the country. The state expenditures for development of the national agriculture, their structure, and the dynamics of changes are analyzed in the work. Particular attention is paid to the question of reformatting of the mechanism of implementation of state financial support, that is, the refusal to use mainly indirect forms of its implementation in favor of direct budget financing of the corresponding programs. The refusal to use the special regime of VAT collection by agricultural commodity producers, that is, the mechanism of the so-called quasi-accumulation of the value added tax, has forced the need to provide compensation for lost funds by agricultural enterprises. The government has ensured transition to the use of direct forms of state financial support, the annual minimum amount of which takes 1 % of GDP. Major transformations have occurred in the financing structure of the corresponding budget programs. The government provides for transition to a priority financing of farms, as main producers of agricultural products. For these purposes, a sixth part of the budget funds is set for financing. Animal breeding is the undisputed leader in terms of attracting of the budget funds. More than 50 % of the total support was allocated for the needs of that branch.

Regional authorities also actively participate in financing of agribusiness development programs. In particular, in the regional budgets, funds are provided for financing of the budget programs, which previously have not received funds from the state budget, because of the priority needs of regional development.

The mechanism of state financial support for the agrarian sector of the economy passes its evolutionary path of development, which necessitates its improvement.