Докторант Жени Бумбарова-Начева
Институт по аграрна икономика - София
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Institute of Agicultural Economics - Sofia
The budget financing issue in agriculture is presently of extreme importance due to the forthcoming subsidizing of this sector by the European Union. One of the main problems which have to be solved by the state is where the subsidies are to be directed to, to which husbandries and branches for enabling impetus to rapid development.
In this article it is attempted to back up by arguments certain principles which should be taken into consideration by the state authorities when distributing the subsidies.
The necessity of subsidizing the Bulgarian agriculture is being analyzed, as well as the expedience of conducting such state policy, which is to be directed towards combining and optimizing different approaches regarding the finding of the most efficient final result.
It is attempted here a comparison to be made between the developed countries, where the measures on one hand are directed at assisting the agricultural sector, or its limitation if necessary, and on the other hand - Bulgaria and - what has to be done in our country regarding the restoration of the agricultural production.
The issues connected with the choice of products and services to be subsidized are reviewed on the grounds of the economic essence and the importance of the subsidy. An analysis of the trends in which the economic consequences from the subsidizing of the branch are revealed is made.
Based on the differences between the elasticity of demand and supply of agricultural and other products the necessity for choice of products, for which target financing should be applied by means of state subsidies is backed up with arguments.
The subsidizing of the Bulgarian agriculture is justified by the existence of an objective measure in terms of time and amount of the subsidy. Otherwise it could turn into a factor of slackness or disadvance of a given production system.
Key words: budget financing, subsidizing, regulative functions of the state.
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Статията е постъпила в редакцията на 15.05.2006 г.