State should not waste money supporting old agricultural production - Dvorkovich
DEREVNYA LESNAYA (NOVGOROD REGION). March 5 (Interfax) - State budget money has to be put either into the full reconstruction of agricultural production facilities or into the building of new ones, Deputy Prime Minister Arkady Dvorkovich said at a meeting in Novgorod Region dedicated to the development of the hothouse vegetable-growing sector.
Dvorkovich argued in favor of supporting such businesses with grants and leasing.
"Taxpayer money should not be spent on supporting old businesses, but either on capital overhauls and full reconstruction or on the building of new [facilities]," Dvorkovich said, adding that the country's regions could in certain cases independently put their budget money into the support of specific businesses.
The most effective way is project financing, he said. The necessary proportion of a business's own funds should be at least 20%, he said.
"Part could come as grant support from the budget," Dvorkovich said. "We have already turned to this model this year. In the extreme case, starting next year we can make full use of it," he said. "Leasing mechanisms coupled with grant support would produce the desired result," he said.