Strategic Instruments of State Support Distribution in the Agrarian Sector

Abstract

This work raises the problem of subsidy distribution to Russian regions for agrarian sector support. Having synthesized legal acts, the authors generated data on the state of support tools in the form of allocations from the federal budget to budgets of Russia’s territorial subjects. It is shown that the new budgetary transfer procedures do not correlate with the efficiency of their use, which contradicts the principles of laws on strategic planning and the use of budgetary funds. On the basis of a methodological review, the main tools for subsidy efficiency analysis are generalized and their applicability in Russian practice is revealed. These methods are largely directed towards the description of efficiency assessment processes and diagnose the result of the use of budgetary funds insufficiently. The authors have improved VNIOPTUSH’s method through adding a number of tools, which ensure the assessment of returns from state support use, taking into account the regions’ natural and economic capacity. New communications are revealed, and the functional dependence of support results on natural and economic conditions of reproduction is examined. These tools increase the objectivity of analytical procedures and the effectiveness of the mechanism of fund distribution between regions. Research based on the advanced method provides new data on the efficiency of budgetary funds use, which considerably depends on the extent to which the agrarian capacity of territorial subjects of the Russian Federation is used. Regions with difficult natural and economic conditions have the best efficiency indicators, whereas regions with favorable conditions for agricultural activities have essential reserves to increase the efficiency of subsidy use, which needs to be considered in future state support distribution