Methodology for the Distribution of Subsidies in Agriculture and Industry: Calculation Formulas

Abstract

With the unprecedented economic sanctions imposed on Russia, the state support of the national economy becomes critical for the economic well-being of the Russian Federation. Financial support of industry and agriculture is aimed at overcoming reliance of the domestic market on imported goods. The Russian Federation actively provides subsidies to the sectors of the national economy. Besides, relevant regulatory legal acts are adopted to stimulate
industries and agriculture. As part of the state policy, they formulate the rules and procedures for providing state funding to the industries supported by the state. Various formulas are applied to calculate the amount of subsidies. These formulas describe the relationship of the parameters with the final (generalizing) indicator. The nature of this relationship is determined by the calculation method underlying each approach. Different approaches reflect how formula components influence the result. Information about each method applied has been systematized and presented in tables. The analysis of formulas for calculating subsidies in agriculture and industry will contribute to the improvement of the methods for distributing budgetary
funds to support the sectors of the Russian economy.