financetom
Economy
financetom
/
Economy
/
Budget 2020: 41% jump in micro-irrigation allocation. Is it sufficient to meet agriculture water shortage?
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Budget 2020: 41% jump in micro-irrigation allocation. Is it sufficient to meet agriculture water shortage?
Feb 3, 2020 6:03 AM

The Budget allocation for the micro irrigation scheme of the government has seen a 41 percent increase compared to the revised estimates for the current financial year. Finance Minister Nirmala Sitharaman has allocated Rs 11,127 crore under this scheme for FY21.

However, experts point out to the lower expenditure in the scheme in FY20. There was 18 percent unutilised fund of the allocated sum in the current financial year for the scheme that promotes ‘Per Drop More Crop’ by focusing on micro-irrigation systems (sprinkler, drip, pivots, rain-guns etc).

At Rs 7,896 crore in revised estimates for FY20, it is in fact marginally lower than the actual expenditure in FY18-19, which was at Rs 8143 crore.

Some say that certain states submit their data and reports later and so the expenditure might go up when the actual spend is announced.

Rajasthan, Maharashtra, Andhra Pradesh, Karnataka, Gujarat and Haryana are the six states that cover over 81 percent of the total area under micro irrigation. Considering large arid pockets in these regions and the states supporting micro-irrigation through subsidies, the central budgeted fund utilisation has seen more progress in these states.

However, other states such as Punjab, where an over dependence on ground water has created many blocks as dark zones are also looking at promoting micro irrigation as a tool to conserve water.

Ashok Dalwai, CEO of the Doubling Farmers' Income Committee, formed by the government, said, “There has been growing awareness in states like UP and Punjab that we need to use water efficiently to reduce cost of cultivation and improve soil health. We need to create more awareness and then PMKSY scheme can focus in these states as well.”

Water is becoming a focus with the finance minister emphasising on comprehensive measures for 100 water-stressed districts to overcome the shortage. Jal Shakti Ministry’s measures for water management is also expected to drive water management programs, he said.

Talking on the increased allocation, Dalwai said: “The government needs to ensure that we have budgetary and non-budgetary support and we have to emphasise on utilisation. Both have to run parallel.”

“Implementation needs to be more efficient. The central and state governments have to work together. Centre needs to educate states, ask them to submit proposals, start releasing money in time, push works.”

Apart from the budgetary support, last year the government had also approved an initial corpus of Rs 5000 crore for setting up a dedicated “Micro Irrigation Fund” with National Bank of Agricultural and Rural Development (NABARD). NABARD will extend loans to state governments to undertake special micro irrigation projects.

First Published:Feb 3, 2020 3:03 PM IST

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Federal Reserve Watch for Feb. 19: FOMC Minutes Hint at Extended Pause in Rate Cuts as Inflation Remains Elevated
Federal Reserve Watch for Feb. 19: FOMC Minutes Hint at Extended Pause in Rate Cuts as Inflation Remains Elevated
Feb 19, 2025
02:37 PM EST, 02/19/2025 (MT Newswires) -- Minutes of the Jan. 28-29 FOMC meeting showed that participants believed they were 'well positioned' to pause rate reductions given the uncertainty of the fiscal policy outlook and still elevated inflation. The minute said that the FOMC would like to see further progress on inflation before considering further rate reductions, particularly given the...
Daily Roundup of Key US Economic Data for Feb. 19
Daily Roundup of Key US Economic Data for Feb. 19
Feb 19, 2025
02:35 PM EST, 02/19/2025 (MT Newswires) -- Housing starts fell by 9.8% to a 1.366 million annual rate in January, with single-family housing starts and multi-family starts both lower. Building permits rose by 0.1% to a 1.483 million rate in January. Single-family permits were unchanged, while multi-family permits were up slightly. Homes permitted but not started increased by 1.4%, suggesting...
Potential impact of Trump policies raised inflation concerns at Fed, minutes show
Potential impact of Trump policies raised inflation concerns at Fed, minutes show
Feb 19, 2025
WASHINGTON (Reuters) - President Donald Trump's initial policy proposals stoked concern at the Federal Reserve about higher inflation, with firms telling the U.S. central bank they generally expected to raise prices to pass through the cost of import tariffs, policymakers said at a meeting held about a week after Trump's January 20 inauguration. Participants at the U.S. central bank's January...
US Equity Indexes Search for Direction as Geopolitics, Tariffs Sap Risk Sentiment
US Equity Indexes Search for Direction as Geopolitics, Tariffs Sap Risk Sentiment
Feb 19, 2025
01:09 PM EST, 02/19/2025 (MT Newswires) -- US equity indexes were mixed in choppy midday trading Wednesday as investors weighed geopolitical risks and punitive import tariffs amid a steeper-than-forecast slump in housing starts. The Nasdaq Composite and the S&P 500 at their respective 20,031.7 and 6,131.2 levels changed little after trading lower earlier in the session. The Dow Jones Industrial...
Copyright 2023-2026 - www.financetom.com All Rights Reserved