Vasilieva L. N., Doctor of Science in Public Administration, Professor, Professor, Department of Accounting, Taxation and Management of Financial and Economic Security, Dnipro State Agrarian and Economic University, Ukraine

ORCID ID: 0000-0001-6728-8895
e-mail: l.m.vas@ukr.net

State Support of the Agrarian Economy Sector in the Conditions of Functioning within the WTO as the Basis of Providing Food Safety

Introduction. It was revealed that the goal of state support of the agricultural sector of the economy is to increase the production of agricultural products and food products to a level that can ensure food security, which is a prerequisite for improving the level and quality of life of the population, while this is an urgent task related to key problems global scale. It is noted that in order to stabilize agricultural production and the requirements of international organizations in terms of state support, it is necessary to create an appropriate mechanism for providing budgetary funds to agricultural producers, taking into account their effectiveness and sufficiency.

Purpose. The purpose of the research is to develop recommendations on the provision on the development of the state support system for the agricultural sector of the economy under conditions of functioning within the WTO as a basis for ensuring food security.

Results. Recommendations on the development of a regulation on the development of a system of state support for the agricultural sector of the economy under conditions of functioning within the WTO as a basis for ensuring food security are proposed. The essence of the developed concept is that this document is a system of distribution of state support funds provided to agricultural producers in the region, taking into account the efficiency indicators of the use of budget funds for the implementation of financial and economic activities of farms, taking into account the requirements of the WTO. It has been established that the support mechanism must combine various forms of its support – direct (subsidies), indirect (preferential taxation, etc.) and indirect (not directly related to agricultural production) state support for agricultural producers. The harmonious combination of these forms of support provides the mechanism with additional stability and efficiency. Under certain conditions, their interaction can cause a synergistic effect. A state support strategy for agricultural producers of agricultural sector is proposed, which is formed from the following interrelated elements: determination of the general goal, substantiation of priority directions of state support, allocation of agricultural sector entities – recipients of state support; the choice of methods and forms of state support, the development of specific measures of state support, the formation of a mechanism for implementing state support measures.

Conclusions. The support mechanism should combine the various forms of its support – direct (subsidy), indirect (preferential taxation, etc.) and indirect (not directly related to agricultural production) state support for agricultural producers. The harmonious combination of these forms of support gives the mechanism additional stability and efficiency. Under certain conditions, their interaction can cause a synergistic (cooperative) effect.

Keywords: agrarian sector; state support; mechanisms; food security.

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