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Ukraine's Cabinet of Ministers plans to increase financial support of agrarians from the national budget's general fund to UAH 8 billion, or nearly US$308 million, by 2020 from UAH 5.5 billion, or US$212 million, this year.
This is stipulated in the budget resolution until 2020, which was approved by the government on Wednesday, June 14.
According to the document, the total amount of subsidies to be provided to agrarians may reach UAH 6 billion, or US$231 million, in 2018 and UAH 7 billion, or US$269 million, in 2019.
Read alsoUkraine sees agriculture output shrink in four monthsThese funds will be channeled into budget subsidies, re-equipment in agriculture, measures to reduce loan rates and insurance fees, as well as into loans for farmers. The funds will be spent, among other things, on the development of cattle breeding, horticulture, and fish farming.
As UNIAN reported, the Cabinet on February 8 approved the procedure for the proportional distribution of UAH 4 billion, or US$145 million, in subsidies on a monthly basis to support the agricultural sector in 2017. It is designed to compensate losses of agricultural producers from the abolition of the special VAT regime.
Read alsoUkraine's agriculture ministry set to boost state support of agri-businessesThe funds will be provided to agricultural producers engaged in cattle and poultry breeding and production of grapes, fruits, berries, nuts, vegetables, tobacco, and sugar beets. At the same time, no more than 50% of the total amount will be allocated for poultry production.
In total, the government has provided UAH 5.5 billion, or US$212 million, for the support of the agrarian sector in 2017, which is 20 times more than a year ago. The amount is 1% of gross agricultural production. This provision on allocating 1% of agricultural GDP is stipulated in the Budget Code for 2017-2021. The Agrarian Policy Ministry projects that state subsidies next year may exceed UAH 6 billion, or US$231 million.