IMPROVEMENT OF FINANCIAL LEVELS OF REGULATION OF AGRARIAN SECTOR DEVELOPMENT

Abstract

Introduction. The article is devoted to substantiation of ways of solving the problem of improvement of financial levers of regulation of agrarian sector development. Methods. On the basis of scientific generalization of classical views of the classics of economic and famous scientists of Ukraine and the use of scientific methods of formalization, deduction, inductive, abstract and logical (for the analytical study of scientific sources, which highlight the workings of scientists in view of the outlined problem), also economic-mathematical (for establishing the cause and effect dependence and trends of the studied factors), statistical comparison (to determine the dynamics of the studied indicators over a long period) and logical generalization (to formulate conclusions based on the results of research into the problem of improving financial and economic relations in the agricultural sector of Ukraine), an attempt was made to substantiate ways of improving the regulation of the domestic agrarian sector development. Results. It is emphasized that the shortcomings of the financial levers used to regulate its development, resulting in increasing absorption of the state budget resources, not only do not ensure the agrarian sector's exit from the protracted crisis, but provoke, as it happens with compensation to the agrarians of interest on bank loans, their increase. Equally ineffective are direct budgetary allocations for various types of payments to agricultural producers - from certain sums to cover part of the cost of excessively expensive fertilizers, inflated insurance tariffs, payments per hectare of winter wheat, one cow, extra cows, and extra young cattle, etc., which are torn from the context of not only macroeconomic regulation but also of market relationships in general. They are not much different from the former extracurricular mechanisms, such as the cheapening of the cost of fuel and lubricants by covering part of the costs of collective farms and state farms for their purchase at the expense of budget financing, or subsidizing the difference between retail and wholesale prices of milk, butter and meat. Discussion. It is emphasized that the way out of the crisis in the agrarian sector of Ukraine is possible only through a thorough review of financial and economic levers, in particular, to eliminate the existing disparity in prices for agricultural products, as well as with banks and insurance companies - to achieve the adequacy of relations with the features of agricultural production and ukrainian use of a stimulating stabilization policy.