D. Narasimha Reddy

AGRICULTURAL BUDGET: LOOKING WITHINFEBRUARY, 2012

Allocations for AgricultureAgriculture

and cooperation

Irrigation

Animal Husbandry/ Livestock

Sericulture

Horticulture

Dairy Developmen

t

ForestryRural

Development

Marketing

AP Agricultural Budget: Trends

Allocations are increasing from Rs.1440 crores in 2009-10 to Rs.2623 crores in 2011-12 2009-10 2010-11 2011-12

B.E B.E B.E

0

500

1000

1500

2000

2500

3000

TOTALNON-PLANPLANTotal CSS

AP Agricultural Budget: Trends

Expenditure has declined from Rs.2795.37 crores in 2008-09 to Rs.1688.79 crores

2008-09 2009-100

500

1000

1500

2000

2500

3000

Expenditure

Expenditure

Trends: Allocation, revision and spending

Allocation Revision Spending

Trends: Allocation, revision and spending

Non-plan declined from allocation, revision and spending

Plan allocation increased marginally from allocation to revision. Spending was much higher

NON-PLAN PLAN0

200

400

600

800

1000

1200

1400

1600

B.E 2009-10R.E 2009-10Accounts 2009-10

Accounts2008-09

Accounts2009-10

B.E2009-10

B.E2010-11

B.E2011-12

R.E2009-10

R.E2010-11

PLAN 2560.31 1409.9 1116.75 1443.03 2148.64 1143.05 1513.74

AGRICULTURE 2132.04 1072.88 812.32 1060.54 1467.8 808.75 1118.64

HORTICULTURE 101.78 124.88 112.53 179.79 390.81 167.4 190.98

SERICULTURE, 2.62 2.13 3.72 3.9 13.8 3.72 5.31

DIRECTOR OF MARKETING 48.35 1.83 0 0 0 0 0

RAIN SHADOW AREAS DEV. DEPARTMENT 3.19 1.25 31 1 1 6 1

Trends: Allocation and percentage

Non-Plan Plan Total Non-Plan Plan Total Non-Plan Plan Total Non-Plan Plan TotalAccounts 2009-10 B.E 2010-11 R.E 2010-11 B.E 2011-12

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

889.15

1680.34

2569.5

1189.7

1838.74

3028.44

1293.11

1917.2

3210.3

1526.52

2813.6

4340.12

1.64 5.44 3.02 1.62 4.56 2.66 1.73 5.28 2.89 1.88 5.92 3.38

Allocation Percent

CAG Report There were considerable variations

between budget estimates and actuals in several parameters.

Central Government has been transferring a sizeable quantum of funds directly to the State implementing agencies (Rs.12,174 crore during the year) , with no monitoring

Direct Funds from Centre to State 2010-11Scheme Amount in

crores

Micro irrigation 240

National Horticultural Mission 105

National Food security Mission 119

Special package for 31 suicide prone dists 23

National project for cattle and buffalo breeding 10

Integrated watershed development programme - DRDA

28

Integrated watershed development prog 120

CAG Report There are 28 major irrigation projects to be completed –

cost escalation is by 26,824.53 crores There are 21 medium irrigation projects to be

completed – cost diffrential is Rs.1673 crores Savings by agriculture department from grants Rs.561

crores (21%), from Rs.2636 crores (revenue voted) Amount surrendered Rs.22.51 crores by agriculture dept There is excess spending (2401-00-001-03) Rs.119

crores – crop husbandry/district offices

CAG Report Pending Detailed Contingent (DC) bills Rs.692.83 crores

(no. of Abstract Contingent (AC) bills 686) – 76 percent Bottom-up approach in budget preparation is ignored Expenditure in March 2011 was 21%, in last quarter 35% errors in budgeting, lumpsum provisions made without

clarity of purpose (only to be surrendered later), excess expenditure over allocation, expenditure without budget provision etc.