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Cut in Punjab Agriculture Budget 2001-02


LAHORE-Though government claims to assign priority to agriculture and allied sectors in the Punjab Budget 2001-2002, the allocation under Annual Development Programme (ADP) has been reduced to Rs 700 million from last year's Rs 900 million while agriculture and food expenditures also reduced by Rs 291.851 million, comparing to last year's allocation.

"Priority has been assigned to the development of agriculture and its allied sectors i.e. irrigation, livestock and forestry. An amount of Rs. 2.878 billion, 19 per cent of the development programme, has been allocated for this most important sector of provincial economy" budget documents stated.
The current allocations for the Agriculture sector stood at Rs 2.2 billion out of total Rs 128 billion Punjab budget for coming fiscal year. Allocation for Livestock & Dairy Development under ADP has been increased from Rs 52 million to 57.136 million this year. However, government drastically reduced budget of Forestry and Wildlife departments by Rs 92.688 million showing a decrease of 56.51 per cent as against last year's allocation of ADP.

Some of the important schemes of the agriculture sector are as follows: On-farm water management activities have been provided with a substantial allocation of Rs. 457 million. ADB/OECF financed component of National Drainage Project, has been assigned Rs. 233 million. Final phase of Chashma Right Bank Irrigation Project and of Punjab Private Sector Ground Water Development Project with an allocation of Rs. 193 million will also be continuing. IDA/World Bank assisted OFWM-IV Project will also be undertaken this year with an allocation of Rs. 16 million.

Subsidies
The Provincial Government has been subsidizing wheat/atta in order to maintain low price of wheat products. Subsidy is provided to cover the gap between the procurement and the issue price of wheat. There has been a decrease of Rs. One billion in Revised Estimates (RE) 2000-01 over the Budget Estimates (BE) 2000-01 of Rs. 5 billion.

The decrease has been necessitated due to decrease in off-take of wheat. BE 2001-02 has been cast at Rs. 5,000.00 million, which includes normal subsidy, and Food Stamp Scheme for the low-income groups.

Irrigation and Power
An amount of Rs. 2.05 billion, which is almost equal to the amount earmarked last year, has been allocated to develop water resources and tackle problem of water shortages.

During the next year Marala-Ravi Link Canal, and Bambanwala-Ravi-Bedian-Depalpur (BRBD) Canal systems will be improved with an allocation of Rs. 150.00 million. Feasibility of modernization/rehabilitation of barrages will be under taken to improve irrigation water supply.

Remodeling of Thal Canal Project with will be continued and for that an allocation of Rs. 151 million has been provided. To mitigate the adverse effects of drought, five small dams will be constructed wit the cost of Rs 30 million. During the financial year 10 kilometers of canals will be brick lined and 200 kilometers of surface drains will be de-silted.

Rs 5 million has been allocated for feasibility Study for Remodeling Barrages (Jinnah, Balloki, Punjnad, khanki, Trimu, Sulemanki and Taunsa Barrages) while Rs 250 million has been allocated for desilting of Drains.

Government also earmarked Rs 358 million for the maintenance and repair of canals and a sum of Rs 112 million allocated for maintenance and repair of embankments.

28-06-01


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