Food Industry News

USDA denied additional funding

The government denied the Ministry of Agriculture (MoA) in the expansion of the budget for the year 2017 least 32,5 billion rubles., Reports "Kommersant" with reference to the Ministry of Agriculture of the materials. In the draft budget for the year 2017 agriculture 214 billion rubles will be laid.

That corresponds to the level of the current year. This decision was taken at yesterday's meeting with Prime Minister Dmitry Medvedev, on the financing of agriculture.

According to the materials of the Ministry of Agriculture, the state program of development of agriculture passport on 2017-2019 years provided funding 300 billion rubles., 324 billion rubles. and 338 billion rubles. respectively. The Ministry of Finance insisted that limit the amount under this program amounted to 204 billion rubles., 198 billion rubles. and 194 billion rubles. The Ministry of Agriculture requested to expand the budget for at least 32,5 billion rubles. or "optimal" on 50,8 billion rubles. These funds are planned to direct the agency to support the farmers, subsidies for investment loans, Rosselkhozbank, "Rosagroleasing" and manufacturers of agricultural machinery.

Following the meeting, as reported by "Kommersant", Dmitry Medvedev agreed to increase funding for the Ministry of Agriculture budget 10 billion rubles. compared to the "ceiling" the Ministry of Finance, ie to the level of 2016 years. In this case the allocated funds should be directed to preferential loans for farmers at the rate of 5%, which should make for 2017 year.

The Ministry of Agriculture said that the rejection of additional financing agricultural sector may suffer for a "reduction in the export potential" products and "non-fulfillment of export orders and stimulate the President of the Government," writes "Kommersant". In addition, the reduction in funding could cause an increase in imports of agricultural products.

For the preparation of budgetary projections based on the amount of 214 billion rubles. The Ministry of Agriculture will have to revise the distribution of funds between 54 subsidy lines.

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