Ukraine's 2018 draft budget foresees no direct subsidies to agrarians

Earlier, the government offered to allocate for this program UAH 2 billion (US$73.5 million) instead of UAH 4 billion ($147 million), stipulated in the state budget for 2017.

Read alsoUkraine's agrarian ministry issues updated forecast for 2017 grain harvestAccording to the draft law, the Cabinet of Ministers proposes an increase in state support to the livestock sector from UAH 2.3 billion ($84.5 billion) to UAH 4 billion by the second reading. The government also proposes channeling UAH 300 million ($11 million) under a program for the development of the hop growing industry and establishment of orchards, vineyards, and berry fields, as well as their management. The first version of the draft law on the state budget for 2018 did not envisage funding for the program.

At the same time, the cost of implementing the program to reduce the cost of loans remained at the same level, that is UAH 66 million ($2.4 million). The proposals for financing the program on the development of farming (UAH 1 billion/$36.7 million), and partial compensation for purchased agricultural equipment of Ukrainian origin (UAH 945 million/$34.7 million) remained unchanged as well.

As UNIAN reported earlier, the government allocated UAH 5.4 billion ($198.4 million) in 2017 for the support of the agrarian sector, which accounted for 1% of gross agricultural production and was 20 times up against 2016. The provision allocating 1% of agricultural GDP is stipulated in the Budget Code for 2017-2021.