A COMPARATIVE ANALYSIS OF THE IMPACT OF SUBSIDIES AND TAX INCENTIVES ON THE DEVELOPMENT OF AGRICULTURE IN THE REGIONS OF RUSSIA

Issue № 5, 2026, article № 29, pages 299-306

Section:

Language: Russian

Original language title: СРАВНИТЕЛЬНЫЙ АНАЛИЗ ВЛИЯНИЯ СУБСИДИЙ И НАЛОГОВЫХ ЛЬГОТ НА РАЗВИТИЕ СЕЛЬСКОГО ХОЗЯЙСТВА В РЕГИОНАХ РОССИИ

Keywords: TAX GOVERNMENT SUPPORT, CORRELATION AND REGRESSION ANALYSIS, TAX INCENTIVES, DEVELOPMENT, REGIONS OF RUSSIA, REGIONAL DIFFERENTIATION, AGRICULTURE, SUBSIDIES, SUPPORT EFFECTIVENESS

Abstract: The relevance of this study stems from the need to increase the impact of state support for agriculture in the context of limited budgetary resources and growing external challenges. Although the volume of financial support has demonstrated steady growth in recent years, the question of the most effective support instruments—subsidies or tax breaks – remains open. A comparative analysis of these measures is complicated by differences in the mechanisms for their provision, accounting, and impact on farm economic behavior. Meanwhile, choosing an effective instrument is of strategic importance for developing a sustainable and competitive agricultural system. The problem lies in the lack of a systematic comparison of the impact of subsidies and tax breaks on key performance indicators, including production volumes, employment levels, profitability, and investment activity. Support is predominantly duplicative or unbalanced, which reduces its aggregate effect. The objective of this study is to compare the impact of subsidies and tax breaks on agricultural development based on an analysis of regional statistics. The methods used include comparative analysis and correlation and regression modeling for 2022-2024 across 82 regions of Russia. The results showed that subsidies for integrated regional development have a more pronounced short-term impact on production growth, with a 1 million ruble increase leading to a 12.2 million ruble increase in output. Tax incentives, meanwhile, contribute to improved profitability. A 1% increase in the share of farms receiving preferential special tax regimes, such as the single agricultural tax, leads to a 4.43% increase in profitability and a reduction in costs. Conclusion: A combination of both instruments, tailored to regional specifics, enables balanced and sustainable agricultural development.

Authors: Ruban-Lazareva Natalia Vladimirovna