The Contribution of the AgrarianBudget to Rural Development in the Republic of Serbia – Case Study

The chapter analyses the support for agriculture and agricultural manufacturers at the levels of the republic (the republic agrarian budget), the Autonomous Province of Vojvodina (APV – provincial agrarian budget) and the local self-government unit (LSGU). We also did a case study on financing agriculture in the City of Smederevo which started the City of Smederevo Agriculture Development Fund in 1996, which provides the assets for a faster rural development in areas under the patronage of the city. The goal of writing this paper was to point out the necessity of financing agriculture form the agrarian budget and the budget of the AP Vojvodina, considering that agricultural production requires considerable financial assets that need to be invested within a short time frame. The investments from the agrarian budget have been declining since 2006. The dynamics of subsidies in the period of 2006-2015, with the plan for 2016, is also presented, showing that support for agriculture is in decline, and that, accordingly, the participation of agriculture in the total formed GDP of the Republic of Serbia is reduced. The purpose of this chapter is to point to the fact that the high percentual participation of rural areas in the country’s total area requires sufficient and adequate financing for rural development in order to ensure the minimum of existential conditions for the rural population that inhabits this territory. The planned investments from the agrarian budget of the Republic of Serbia and the APV for the year 2016 (lower than those for 2015) are also presented.