Fiscal subsidies and their impact on the efficiency of agricultural enterprises of Trans-Urals Region

Abstract

Subject. State-sponsored activities to the agro-industrial complex have a significant impact on the performance of rural producers and contribute to their sustainable development. The targeted State support, including the direct budget financing, is not allocated to all economic entities. This leads to large differences in profitability of enterprises, and has a negative effect on the functioning of the entire agricultural industry of the region. It is the improvement of the mechanism of fair distribution of budget funds, both at the federal and regional levels, that may affect the efficiency of agricultural production. Objectives. The study aims to assess the system of State support to rural producers of the Kurgan Oblast, and its impact on sustainable development of the agricultural sector of regional economy, to determine the role of individual factors in calculating an integrated measure of budget efficiency. Methods. The study employs the principle of systems approach, as well as a set of such methods as abstract-logical, grouping, comparison, economic-statistical, and graphic. Results. We analyze the impact of investments on the development of the entire agricultural industry, as well as budget financing of agricultural farms. Agricultural enterprises have been grouped by budget subsidy, including by legal corporate form. Conclusions. We improved the methodology for assessing the effectiveness of government support, based on the calculation of integral indicator, through the inclusion of additional coefficients that reflect the social, insurance and credit efficiency of budget financing.