Abstract
Financial support of the agricultural sector of the economy in the current context is the leading function of state regulation since it is strategically important for national security. The effectiveness of state financing of the agricultural sector of the economy involves ensuring the positive dynamics of its development and establishing appropriate estimate indicators. In this regard, the cost and streams of state financial support for the agricultural sector of the economy should be as effective as possible. The purpose of the article is to substantiate the priorities of state financial support for the capital reproduction in the agricultural sector of the Russian economy based on a comparison with the European Union. The article clarifies the essence of various approaches and mechanisms, as well as indicators of state support for the agricultural sector of the economy of the EU and Russia, indicators of agricultural production volumes supported by the state, as well as nominal protection coefficients (NPC). The authors conclude that the financial policy of capital reproduction in the agricultural sector of the Russian economy is aimed at ensuring its long-term sustainable expanded intensive innovation-based reproduction. At the same time, the key to its implementation is a clear identification of the mission of financial policy, strategic and tactical tasks, ensuring their feedback and adaptation to changes in the internal and external environment of the agricultural sector of the economy, as well as considering the risks of capital reproduction. At that, the basis for supporting producers in the EU is the financing of capital investments of farmers, while the basis for supporting producers in Russia is providing support based on commodity products.
Highlights
Particular attention is being paid to the agricultural sector, whose importance for the Russian economy has increased over the past decade, especially in the context of the need for food import substitution
The state financial policy in the agricultural sector is imperfect and contains several miscalculations, in particular, the lack of comprehensive strategic approaches and a clear justification of development priorities, the dispersion of public funds allocated for various programs and individual activities, the lack of clear criteria for allocating state support, which sometimes leads to irrational use of budget funds [1]
Akram W. et al emphasize that international financial and credit institutions are recommended to refrain from using state support in the agricultural sector of the economy, and expect that within a certain time, economically weak business entities will go bankrupt and cease to exist as uncompetitive
Summary
Particular attention is being paid to the agricultural sector, whose importance for the Russian economy has increased over the past decade, especially in the context of the need for food import substitution. The state financial policy in the agricultural sector is imperfect and contains several miscalculations, in particular, the lack of comprehensive strategic approaches and a clear justification of development priorities, the dispersion of public funds allocated for various programs and individual activities, the lack of clear criteria for allocating state support, which sometimes leads to irrational use of budget funds [1]. The analysis of the experience on implementing state support mechanisms for the agro-industrial complex in the EU countries [4,5] shows the active role of the state in creating favorable financial conditions for the development and improvement of competitiveness of the agricultural sector. In 2014-2020, the EU budget allocated more than 373 billion euros to support agriculture [5]
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