Punjab agriculture, allied depts to get Rs31.5 bn under development budget

LAHORE: With the focus on contributing towards improved research and better extension and field services for farmers, the Punjab government has allocated Rs31.49 billion for agriculture under the development budget for financial year 2021-22.

For the first time, the provincial government allocated separate budget for the south Punjab districts, outlining agriculture development as most critical priority for the region with focus on wheat, livestock, cotton and fruits production. Moreover, agriculture value addition has been termed a lever for economic growth of south Punjab.

One of the most important initiatives includes agriculture transformation plan worth Rs5 billion. The major component of the initiative are: promotion of mechanised agriculture for increasing crop productivity, privatisation of agriculture extension services to enhance service delivery, programme for quality seed production and dissemination, establishment of centres of excellence for wheat, rice, sugarcane, maize and millets. The total multi-year outlay for agriculture transformation programme is said to be Rs100 billion, Rs2.4 billion interest-free loans through digital and financial inclusion (e-credit).

Contributing over 54.2 per cent to the national economy, the sectoral share in Punjab’s economic structure comprises 20 per cent agriculture, 17.6 per cent manufacturing and 62.4 per cent services. The expenditure on agriculture under the head of budget estimate 2020-21 was Rs23. 98 billion, while the revised estimate stood at Rs28.39 billion. Under the same head, the provincial government earmarked expenditure of Rs28 billion for the budget estimate 2021-22.

The provincial government also expressed resolve to enhance existing land-based rates of agriculture income tax besides continuing Strengthening markets for agriculture and rural transformation (SMART) project.

The Punjab government also announced Rs4 billion programme for subsidy on inputs. With the allocation of Rs1.92 billion, promotion of high value agriculture through solarisation of drip & sprinkler irrigation system is being launched. Furthermore, Rs20.1 billion was allocated for the irrigation sector. Afforestation is another area of concern in the light of growing population and starkly reduced ratio of number of trees per person. To address this issue, regular tree plantation campaigns are organised across the Punjab.

According to the budget documents, agriculture sector performance during FY2020-21 was impressive with crops sector showing exceptional performance baring cotton crop. There are bright prospects that the cotton crop would rebound in the coming year and remaining important crops would also build on the productivity gains achieved during FY2020-21.

The provincial government allocated Rs33.77 billion for irrigation sector. The major outlay includes Rs16.8 billion for rehabilitation of Trimmu barrage and Punjnad headworks, Rs10.7 billion for disaster and climate improvement project, Rs4 billion for remodelling of SMB Canal and enhancing capacity of Mailsi syphon. In a major development, the provincial government earmarked Rs8.1 billion for land acquisition for Greater Thal Canal project.

Furthermore, the provincial government allocated Rs5 billion for livestock & dairy development, Rs500 million for food department, Rs4 billion for forestry Rs1 billion each for fisheries and wildlife sectors.