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Review Of The Budget Support System For The Agricultural Sector In Russia

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Abstract

This article summarizes the results of the Russian Agricultural Public Expenditure Review (PER). PER studies are conducted by the World Bank on a regular basis. This study evaluates the level and structure of budget support to agriculture in Russia and its contribution to the long-term economic growth of the sector. We analyze, to what extent can the economic growth demonstrated by the Russian agriculture in recent years be attributed to the budget support policy and suggest how the redistribution of funds to different means of support may increase this impact. The effect of the budget support to agriculture on economic growth in agricultural sector is evaluated using the model developed by Lopez and Galinato (2007) (fixed-effects model). The federal budget support evaluation is supplemented by an analysis of inter-budget relations in agriculture. The data confirm that budget support has a positive impact on agricultural growth; however, other factors have more prominent effect. In order to increase the efficiency of the budget support system in agriculture it is recommended to increase the transparency of budget support, redirect support by subsidies for producers towards general services, increase support for research and innovations, ensure the stability of support policies and limit the ability of the regions to obstruct competition through agricultural policies.

Suggested Citation

  • Olga Shik & Evgenia Serova & Renata Yanbykh, 2020. "Review Of The Budget Support System For The Agricultural Sector In Russia," Public administration issues, Higher School of Economics, issue 2, pages 145-167.
    • Handle: RePEc:nos:vgmu00:2020:i:2:p:145-167
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