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Yuscheko calls on Tymoshenko to boost state support of farmers in draft state budget 2010

14.10.2009 08:05 "Agro Perspectiva" (Kyiv) — President Viktor Yuschenko has called on Prime Minister Yulia Tymoshenko to strengthen state backing of agricultural producers in the draft state budget for the year 2010, the official web-site of the president reported.

"I am asking you... to radically review, while improving the draft state budget 2010, approaches to the state support of agricultural enterprises… having provided them with at least smallest necessary volumes of the support," the press service cited the letter of Yuschenko to Tymoshenko.

He is calling to increase the support through involvement of specialists of the branch and representatives of agricultural NGOs.

In addition, Yuschenko is demanding to improve state backing of the rural social sphere.

He said his appeal to Tymoshenko was connected with a sharp worsening of the financial state of agricultural enterprises due to instability in the market of agricultural produce, lack of crediting and ineffective state regulating of the sphere.

Yuschenko considers imperfect the mechanisms of state support provided in the draft state budget 2010.

"Draft law of Ukraine “On State Budget of Ukraine for 2010” submitted by the government to the Verkhovna Rada contains defective tools of such support as well as its insufficient volumes,” the letter reads.

In particular, the president believes that generation of all of the funds for the support in the stabilization fund and their reduction in the general fund of the draft state budget 2010 will repeat the situation which formed in 2009, when as of September 22 only 12% of the amount had been allocated out of UAH 2.2 billion provided in the stabilization fund, according to the statement.

Yuschenko also said manual distribution of the funds supporting the farmers will lead to underfinancing of major fields of the branch, including livestock farming subsidies, state support of plants production and cheapening of credits for the agricultural complex.

The president is calling on Tymoshenko to provide farmers with direct state support for their crediting, and not on a returnable basis.

The president said that combined financing of programs supporting agricultural enterprises from the general ad stabilization funds was increased by UAH 356 million in the draft state budget 2010, and not by UAH 1.7 billion as the prime minister said.

Yuschenko believes that insufficient backing of the agricultural complex will hamper development of the majority of agricultural enterprises for it does not allow to finance in full state programs cheapening the credits provided to farmers, and supporting agricultural enterprises, livestock farming, pedigree breeding and plants selection.

Prior to that Yuschenko said the draft state budget 2010 should be immediately improved by the government and the Verkhovna Rada.

Yuschenko said he will not sign the state budget for 2010 if it lacks sufficient funds for financing the Armed Forces.

Agro Perspectiva

< Within Jan-Aug agrarians sold 174,635 MT soybeans

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14.10.2009

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