Cabinet boosts support for agricultural sector in 2021 budget

Ukraine's Cabinet of Ministers has envisaged UAH 4.7 billion, US$165.7 million, in support for the agricultural sector in the 2021 national budget, which is UAH 700 million, or US$24.7 million, up against the 2020 budget.

That is according to the budget presentation published on the ministry's website on December 28.

Read alsoHarvest 2020: Challenge for farmers, rising food pricesIn particular, the government is expected to finance the following projects: a reduction in the cost of procurement of agricultural machinery and equipment, as well as the cost of loans for agricultural enterprises; development of farms; improvement in livestock production, horticulture, viticulture, and hop growing; and support for private irrigation systems.

In addition, the government will continue supporting farmers through the state-funded Affordable Loans: 5%-7%-9% program.

About 9,000 enterprises of the agro-industrial complex are expected to receive aid in 2021, the ministry says.

National budget 2021: Background

• On December 15, 2020, the Verkhovna Rada, Ukraine's parliament, passed a draft law on the 2021 national budget.
• On the same day, the parliament backed a resolution on the Verkhovna Rada's budget for 2021.
• On December 21, 2020, Chairman of the Verkhovna Rada Dmytro Razumkov signed the bill on the national budget.
• On December 25, 2020, Ukrainian President Volodymyr Zelensky enacted the bill, having signed it into law.