Ihor Petrashko: Government transferred over half a billion hryvnias to repay debts to agrarians for 2019

The Government has started financing the budget program "Financial support for agricultural producers" in 2020 in the area of "Partial compensation for the cost of agricultural machinery and equipment of domestic production."

Thus, the Ministry of Economic Development, Trade and Agriculture by orders No. 936 and 937 dated 22.05.2020 approved the distribution of funds in the amount of UAH 555 million between authorized banks to transfer the resource to the current accounts of agricultural producers who purchased machinery and equipment in October and November 2019.

The total amount of debt under this program was UAH 564 million, the remaining sum worth UAH 9 million will be approved to be transferred shortly.

The funds will be received by 4,102 farmers, who for the specified period purchased 14,756 units of machinery and equipment for a total of UAH 2.7 billion.

“It is extremely important for the Government to continue funding of the mentioned technology program, as it has shown positive economic effects over the years of its implementation. Thus, the number of agricultural machinery manufacturers with the appropriate level of localization has increased to 4.5 times, thereby having contributed to the expansion of the number of jobs by at least 5,000,” commented the Minister of Economic Development, Trade and Agriculture Ihor Petrashko.

Moreover, apart from the effective indicators of the program’s effect:

- investment in the development of mechanical engineering in the agro-industrial complex has grown - the amount of investment in technological re-equipment of production in 2017-2019 amounted to about UAH 2 billion;

- the rate of domestic machinery in the formation of the market of agricultural machinery and equipment in Ukraine has increased up to 33% in 2019 against 15.2% in 2017;

- the range of domestic machinery and equipment has been significantly expanded: 12,542 items in 2019 against 792 items in 2017;

- the wage fund has increased: all production enterprises-participants in accordance with the requirements of the program have raised the wage fund up to at least 8% of the cost of production/sales;

- the multiplier of only the payment of taxes from the implementation of the program in 2019 amounts to 1: 1.7 (taking into account the total amount of taxes and fees compared to budget expenditures).

The expected effect of program funding in 2020 is as follows:

- increase in volumes of sales of domestic machinery and equipment by 15%;

- revenues from taxes and fees from program participants and related industries will amount to about UAH 2.34 billion, of which more than UAH 550 million are taxes on the wage fund.