Agriculture gets a meagre sum

Page 1 of 2

Published on June 13 2011 ,Economic and Business Review Page 3

Agriculture gets a meagre sum

By Ahmad Fraz Khan

AS expected, the Punjab agriculture budget proved to be a perfunctory exercise in status quo high on verbosity, and low on performance. The budget document envisages, self-reliance, food security and promotion of exportable high value crops.The agricultural vision includes holistic management, stress on innovative technologies to raise vertical crop yield , increase in farmers income through enhanced productivity, better support price, diversified agriculture, etc. It puts emphasis on high value agriculture fruits and vegetable production. Revamping infrastructure and capacity building of research and extension, developing value chain and focusing on horticulture, wheat, rice, cotton and maize have also been listed as objectives of the budget. Strengthening research and extension services and developing efficient mar ket infrastructure have also been included. . However, the reality check tells a different story. To begin with, out of the total development outlay of Rs220 billion, the agriculture sector including all its important and massive sub-sectors like irrigation, livestock, food and forest, wildlife and fisheries have got only Rs18 billion, or just eight per cent of total annual development plan. This allocation is for a sector that contributes nearly a quarter of the provincial gross domestic product. Interestingly, none of the areas mentioned in the vision or objectives part have got significant allocation. Out of total Rs18 billion, over Rs11 billion have gone to irrigation alone and will be spent on rehabilitation of two barrages. The rest are smaller and ongoing proj ects. Thus, the rest of the sector would survive on a meagre amount of Rs7 billion. Does that money make sense for a sector that is supposed to provide food security to not only the province but to the entire country of 180 million people? If actual releases to the sector are taken into account, they make the mockery of even these pathetic allocations. In the last three years, the present government has never released full allocations to the agriculture sector. In 2008-09, budgetary allocation for agriculture sector was Rs3 billion, which later was revised to 2.2 billion. During 2009-10, the allocation was increased to Rs3.2 billion. But, it was later revised to a paltry Rs1.96 billion. Last year was even worst; the original allocation of Rs3.2 billion was reduced by over 50 per cent and cut to Rs1.52 billion. That is why no one believes that the current allocation of Rs3.4 billion for the sector would survive for the next year without drastic cuts. In addition to these cuts, the actual spending is even less. This year, the actual spending of the total budget did not go beyond 60 per cent in any of the sector, including agriculture. The stats are being finalised, but, given the years pattern, most of the analysts conclude that the actual spending should fall anywhere between 50 to 60 per cent. That is precisely how the politicians treat the sector, which generates over 40 per cent employment for the country and contributes to over 60 per cent exports. The ADP lists seven minor projects, which are supposed to realise above-mentioned vi sion for the sector, and generate massive results to meet the budgetary objectives. These projects and their allocation make the reality of the projects clear. Out of total Rs18.55 billion ADP, Rs3.4 billion went directly to the agriculture sector. The major amount (Rs1.36 billion) would go to solar powered tube-wells and Rs400 million to Irrigated Agriculture Productivity Improvement Project. Promotion of Drip and Sprinkler Irrigation will consume Rs400 million, Fruit and Vegetable Development Project another Rs142 million, development of Greater Thal Canal Command Area Rs110 million, Adaptation of Bio-Gas Technology Rs53 million and Small House cum Garden Plots another Rs105 million. The biggest project listed in here is Solar Power Tubewells. Interestingly, it was late entry in the budget and no proper studies were carried out for it. It entails subsidies, which, by their very nature, are prone to corruption, or at least corruption allegations. Take this one project out and the agriculture sector is left with a budget of just over Rs2 billion. Take the usual reduction into account, and the budget might be reduced to Rs1 billion. Further, take the spending constraints, and no one knows what the sector would actually receive. Does the government really believe that such a non-committal attitude and budget can ensure food security in the country? If it sincerely believes that, there is something terribly wrong with it. It made its actual priorities clear when it allocated Rs47 billion to po lice. No one denies the role of police in present law and order situation. But, one must realise that police is dealing with the symptom, not the disease. The real disease is poverty, which is producing militants in the country. And only agriculture can deal with the poverty, and the disease eating into fabric of the society. In final analysis, the provincial budget seems to be run of the mill document, which tried to keep the momentum of ongoing schemes rather than breaking new ground. Tragedy with the provincial agriculture, however, is that traditional methods and
VisaV.com Ads by Google

http://epaper.dawn.com/ArticleText.aspx?article=13_06_2011_603_002

6/25/2011

Agriculture gets a meagre sum

Page 2 of 2

allocations would not solve its problems. It needs innovative thinking, out of box solutions and sustained, long-term commitments. The proposed budget, however, fails on all these accounts.

TOP

www MichelBeaubien com

Ads by Google

http://epaper.dawn.com/ArticleText.aspx?article=13_06_2011_603_002

6/25/2011