THE ROLE OF PROGRAM-TARGET FINANCING IN INNOVATING DEVELOPMENT OF THE REGION AGRARIAN SECTOR

Abstract

The advantages and features of the program-target approach are considered. The essence of program-target financing as a method of forecasting and using of financial resources necessary for achievement of program goals with the possibility of monitoring the efficiency, transparency and timeliness of spending with the attraction of budget funds during the implementation period of economic development programs is disclosed. The peculiarities of program-targeted financing for the innovative development of regional agrarian sector are noted. It is proposed in the process of program-targeted financing to provide coordinated financial support for innovative programs, cover risk insurance costs in complex innovation implementation and growing costs at the initial stage of innovation implementation using the budget funds. The main idea of the program-target financing is the concentration of limited resources on innovation development priority tasks solving, the programs development and on providing the appropriate co-financing from different level budgets and other sources. In the regional aspect the innovation development directions and sources of financing, including the attracted budgetary funds, will be different, that determines the specification of the innovation programs program-target financing of plains and mountainous regions. Program-targeted financing implements into the program budgeting process important elements of the costs and results comparison analysis. This analysis serves as an effective tool for the program evaluating, which provides reasoned approval and budget funding for those programs, where results exceed the incurred costs. The program-targeted financing fully corresponds to the specifics of the modern period of agrarian sector development and allows to provide qualitative changes in the innovative development at the macro, meso and micro levels. In particular, it provides the financial plan development that is based on the agrarian sector innovative development goals with further search and identification of effective ways and means for their achievement and resource provision.