Ukraine's draft state budget 2025 allots around 2.5 bln hryvni for agrarian sector

MOSCOW. Oct 31 (Interfax) - The Ukrainian parliament has envisaged the allotment of about 2.4 billion hryvni to support the agrarian sector in the first reading of the bill on the Ukrainian State Budget of 2025, Ukrainian media said, citing a statement by parliament deputy Sergei Labazyuk on a social network.

In his words, an amendment proposed by the Parliamentary Committee on Agrarian and Land Policy allots 740 million hryvni for construction or renovation of livestock farms, fish farms, milking parlors and processing facilities, 440 million hryvni for breeding resources, 900 million hryvni for grain storage, and 70 million hryvni for increasing the number of cattle.

"There will be no such a detailed distribution of funds in the state budget. We are talking about agreeing on the total amount and further distribution by the government. These areas are crucial, because every hryvnia of support will generate at least 500% co-financing from agricultural producers (a little less by small ones)," he said.

The parliament did not support the amendment increasing the gas production rent by 14 billion hryvni (31 billion was included in revenue per year, which is a 45% increase), Labazyuk said.

"This will affect the price for consumers, including farmers. However, this is a good incentive for a faster transition to small bio-methane plants and own generation," he said.

As reported, the Committee on Agrarian and Land Policy, together with other ministries and departments, drafted nine proposals for the Ukrainian state budget of 2025. This includes support for the agricultural sector totaling over 6.5 billion hryvni to promote the development of livestock farming, industry insurance, beekeeping, organic production, etc.

Parliament members proposed allocating 1 billion hryvni for the reconstruction of melioration systems and electricity generation from agricultural waste each, starting a new program for the restoration of aquatic bio-resources with 21-million-hryvni funding, extending the program for partial compensation of the cost of agricultural machinery with a budget of 1 billion hryvni, and supporting cotton cultivation in southern Ukraine.