The choice of indicators for monitoring financial regulation of sustainable development of agricultural regions: the example of Ukraine

National Science Center «Institute of Agrarian Economics», Kyiv, Ukraine

^* Corresponding author: oxanarad@ukr.net

Abstract

The influence of a group of indicators on the integral assessment of the state of agrarian regions for improving the financial mechanisms for regulating sustainable rural development has been investigated. The goal is to identify the relationship between the level of economic growth (growth in agricultural GDP, GVA per employee, income per community resident) and the amount of resources that are financed from the budgets. The empirical study was carried out on the basis of panel data formed for a sample of individual indicators of the rating of regional development of Ukraine for 2017-2019. The nature of the distribution of the studied variables was determined by calculating the correlation coefficients. Based on the results, a relationship was established between the indices: budget financing and gross production - 63%; budget financing and integral production index - 58%; income of rural budgets and profit of agricultural production - 38%. It is recommended to reduce direct agricultural subsidies, increase the allocation of funds for social development, and finance the most effective programs in order to ensure sustainable development of rural regions. To monitor the process of the effectiveness of financial regulation, it is proposed to use production, economic and social indicators in conjunction with the integral, which will become a more reliable basis for the distribution of budgetary allocations for agricultural and social development in Ukraine.