PLAN OUTLAY OF MINISTRY OF AGRICULTURE FOR 2005-06 RAISED BY 43 PER CENT
PLAN OUTLAY OF MINISTRY OF AGRICULTURE FOR 2005-06 RAISED BY 43 PER CENT
New Delhi, Vaisakha 9, 1926
April 29, 2005
The plan outlay of the Ministry of Agriculture has been raised by 43 per cent from 4,192 crore in 2004-05 (Budget Estimates) to Rs.5,998 crore in 2005-06 (Budget Estimates). A number of new schemes aimed at improving productive capacity in agriculture, which largely benefits rural areas by raising employment and income, have been taken up. The plan outlay for the schemes shown below consists of both revenue and capital components. However, the distinction between revenue and capital components given in the Budget Documents is not strictly based on distinction between items of expenditure, which significantly contribute to formation of durable assets and those, which do not significantly contribute to formation of durable assets. Often the contribution in the field of agriculture to formation of capital of assets is indirect. For example, according to the Budget Classification the entire plan outlay for the Department of Agricultural Research & Education is categorized as revenue, whereas it is widely known that a considerable proportion of the outlay on agriculture, which would in turn contribute to improvement in income and welfare of the people in rural areas. This also holds good in case of plan outlays of many other schemes like horticulture, irrigation, etc.
(i) National Horticulture Mission: A sum of Rs.630 crore has been provided for the scheme, aimed at ensuring an end-to-end approach having backward and forward linkages covering research, production, post harvest management, processing and marketing, under one umbrella, in an integrated manner.
(ii) Development/Strengthening of Agricultural Marketing infrastructure, Grading and Standardization: A sum of Rs.72 crore has been allocated for the scheme, aimed at inducing large investment from private and cooperative sector for setting up agricultural markets, marketing infrastructure and support services such as grading, standardization, etc.
(iii) Micro Irrigation: Micro-irrigation scheme is expected to promote water use efficiency in Indian agriculture. A sum of Rs.400 crore has been allocated for the scheme, aimed at promoting micro irrigation technology, comprising drip and sprinkler irrigation on a large scale in the year 2005-06. About 1.2 million hectares have been covered under micro-irrigation so far and it is proposed to increase the coverage to 3 million hectares by the end of the 10th Plan.
(iv) Agricultural Research: In order to promote agricultural research, it is necessary to strengthen and modernize the agricultural universities and research institutions, which have done good work in the past. A Task Force headed by Dr. M.S. Swaminathan has recommended the creation of a National Fund for Strategic Agricultural Research. The Union Budget for 2005-06 has announced an initial provision of Rs.50 crore for operationalizing this fund.
This information was given by Shri Kanti Lal Bhuria, Minister of State for Agriculture, in a written reply to a question in the Rajya Sabha today.
UM/RC/Hb
(Release ID :8907)