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Economic Analysis: Theory and Practice
 

Updating the methodology for providing incentive subsidies to depressed agricultural regions

Vol. 19, Iss. 12, DECEMBER 2020

Received: 25 June 2020

Received in revised form: 9 July 2020

Accepted: 30 July 2020

Available online: 25 December 2020

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: Q14, Q18, R1

Pages: 2210–2224

https://doi.org/10.24891/ea.19.12.2210

Sharapova V.M. Urals State Agrarian University (Urаl SAU), Yekaterinburg, Russian Federation
agroprom3@sky.ru

https://orcid.org/0000-0003-1272-827Х

Medvedeva T.N. Kurgan State Agricultural Academy named after T.S. Maltsev (Kurgan SAA), Lesnikovo Village, Ketovsky District, Kurgan Oblast, Russian Federation
medwedewa@yandex.ru

https://orcid.org/0000-0002-1124-5738

Farvazova E.A. Kurgan State Agricultural Academy named after T.S. Maltsev (Kurgan SAA), Lesnikovo Village, Ketovsky District, Kurgan Oblast, Russian Federation
linulya07@mail.ru

https://orcid.org/0000-0003-1134-9294

Subject. The article considers a procedure for calculating and distributing State support to depressed agricultural regions in the framework of a new type of budget financing, i.e. compensating and stimulating subsidies.
Objectives. The purpose is to evaluate the efficiency of the system of State regulation of agribusiness in a depressed region, determine the priority of modern methods of budgetary support from the State, improve the methodological approach to the distribution of State aid among subjects of the Russian Federation with low level of socio-economic development.
Methods. The study draws on the abstract and logical method, methods of statistical analysis, grouping, comparison, and generalization.
Results. We realized the objectives of the study, using the agricultural producers of the Kurgan Oblast case. The paper analyzes the condition of agricultural sector in the depressed region, assesses the State support system efficiency for the agricultural sector of the Trans-Ural region, considers government measures related to the regulation of the economy of backward regions. It presents an updated method of budget financing within an incentive subsidy by clarifying the calculations and introducing an additional indicator that reflects the level of remuneration of regional agricultural producers.
Conclusions. The updated calculation methodology for incentive subsidies to depressed regions enables to build a certain economic rating of ten depressed regions of the Russian Federation, taking into account not only the volume of production and employment, but also the level of wages of agricultural workers.

Keywords: agricultural sector, State support, methodology for distribution, depressed region

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