* Total cuts in PSDP amount to Rs 100 billion
ISLAMABAD: Contrary to the tall claims of the present government of declaring agriculture as priority sector, an cut of Rs 4 billion (20 percent) has been recommended for different agriculture related development schemes for the year 2008-09, sources told Daily Times here on Monday.
The officials of Planning Commission in its recent meeting with ministers/divisions concerned over Rationalisation of PSDP 2008-09 have recommended 30 percent cut over the PSDP. For a total of 65 different agriculture development projects, the government has allocated Rs 20.015 billion in the PSDP 2008-09. These are national importance projects and after completion, would greatly help in ensuring food security in the country. Some of the important projects among these are: Livestock production and development of meat production, Prime Ministers special initiatives for livestock, Milk collection/processing and dairy development programme, National integrated pest management, National programme for control and prevention to avian Influenza in Pakistan, Research for agriculture development programme, Aquaculture and shrimp farming, Commercialisation of tea production through public-private partnership, National commercial seed production programme, Research and development of Cotton programme, Agribusiness development and diversification project, Establishment of seed testing laboratories and rehabilitation of existing labs along with many others.
Among the total 65 development projects, 24 were declared, by the Ministry of Food, Agriculture and Livestock (MINFAL), as high priority projects and total allocation for these in the PSDP was Rs 17.435 billion. However, a cut of Rs 2.904 billion is recommended and now allocation for these projects is Rs 14.531 billion.
In category B, (medium priority projects) included 36 projects worth Rs 2.530 billion in the PSDP 2008-09. An amount of Rs 1.070 billion cut is recommended for these projects and now the total allocation for these projects is Rs 1.459 billion.
In category C (low priority project) consist only one project, namely Improvement of Agriculture Livestock Market and Marketing System with initial total allocation of Rs 13.400 million. The official in rationalisation PSDP meeting has cut the allocation by Rs 8.400 million and now the amount for this project is Rs 5 million. The fourth category D included projects to be completed as early as possible or these would be wind up by December 2008. In this category there are four projects namely, Introduction of sugarbeet and enhancement of sugarcane productivity worth Rs 35 million, Operationalisation/Commissioning plant quarantine laboratory worth Rs 17.700 million, Improvement of water management of water management practices in Northern Areas worth Rs 37.783 million, and Exploitation and management of water resource for development of Peri-Urban Areas around ICT worth Rs 27.206 million. Total allocation for these four projects was Rs 36.196 million but an amount of Rs 20.196 million cut was recommended on these projects and now actual allocation for these projects stand at Rs 16 million. Overall, the government has decided to place a 30 percent cut in 2008-09 PSDP of all ministries except education and health, as they were the priority sectors for Pakistan Peoples Party-led government. The government has decided that no financing from the national exchequer would be available for projects that would face the cut.
After Rs 100 billion cut in the PSDP, its overall size would come down to Rs 441 billion from Rs 541 billion. This measure would help the government to keep the budget deficit at levels of 4.7 percent of the projected GDP for 2008-09. A senior official told this scribe on Monday that cut decision was taken due to severe financial constraints confronting the government amid political and economic instability in the country.