Version II DraftDraft for forDiscussion Discussion MEDIUM TERM BUDGETARY FRAMEWORK (MTBF) (2010-13) Volume - III Medium Term Budgetary Framework (MTBF) – Irrigation & Power Department (2010-13) Government of the Punjab Irrigation & Power Department 27th July 2010 i Draft for Discussion Table of Contents DRAFT MESSAGE FROM SECRETARY IRRIGATION & POWER 1 ACRONYMS 2 SECTION I 4 1. Introduction and background to the Department 4 1.1. Particulars of the Department 4 1.2. Vision statement 4 1.3. Policy objectives 4 1.4. Overview of Irrigation System in Pakistan 5 1.5. Overview of Irrigation Sector in Punjab 6 1.6. Organizational Structure and Functions of the Department 7 1.6.1. Goals and Objectives 7 1.7. Share of I&P’s budget in provincial budget outlay 11 2. Medium term budget estimates (2010-13) 13 2.1. Priorities in medium Term (2010-13) 13 2.2 Summary of MTBF Estimates (2010-13) 13 2.3 MTBF allocations by policy objectives 16 2.4 MTBF allocations – by object classification 18 2.5 MTBF allocations – by functional classification 21 2.6 MTBF allocations – by cross classification 23 2.7 Key inputs and outputs – Current Budget 28 2.8 Selective Outputs for Large Development Schemes 31 APPENDIX – A: ORGANOGRAM OF IRRIGATION & POWER DEPARTMENT 36 APPENDIX – B: EXPLANATORY NOTES TO MTBF ESTIMATES (2010-13) 37 APPENDIX – C: MTBF AT IRRIGATION & POWER DEPARTMENT 43 GLOSSARY OF TERMS 46 SECTION II 49 PART – A: DETAILS OF CURRENT BUDGET ESTIMATES 2010-13 49 PART – B: DETAILS OF DEVELOPMENT BUDGET ESTIMATES 2010-13 126 i Draft for Discussion Draft Message from Secretary Irrigation & Power Irrigation and Power department is one of the key departments of Punjab Government as the irrigation system serves as a lifeline for sustaining the agriculture sector and irrigated lands supply more than 90% of agricultural production. Keeping in view the critical importance of irrigation sector in the economy, a well defined operational planning system is in place at the department which facilitates preparation and execution of detailed work plans for main activity of the department i.e. Repair & Maintenance of irrigation system. These work plans are based upon the costing benchmarks named “yardsticks”. Although department possesses one of the most advanced operational system for its maintenance activities, yet there were gaps in financial and budgeting aspects of the department. These gaps have been filled by the introduction of Medium term Budgetary Framework (MTBF) in the department. Now when the department has completed two budget cycles under MTBF, we now are confident that considerable improvement has been made in the planning, budgeting and financial management of the department. Capacity of department’s officials for effective planning and budgeting by transforming operational plans in financial terms according to the priorities of the department has been improved and a sense of thinking and planning ahead has been generated. Realizing the significance of MTBF process, the department provided full support for the initiative so as to fully realize its benefits, learn key lessons and provide feedback for sustained improvements in succeeding years. Like last years, a core team comprising of senior officials and operational personnel of the department worked in close consultation with the consultants. The result of this joint effort is this MTBF statement 2010-13. I hope that this MTBF process will further strengthen the budgeting, planning and financial management side of the department which in turn will help in effective and efficient resource allocation as well as prioritization of key policy objectives in order to achieve optimum efficiency level in future. Malik Rab Nawaz 1 Acronyms ADP Annual Development Plan AS(O&B) Additional Secretary (Operations & Budget) AS (T) Additional Secretary (Technical) BCC Budget Call Circular BPS Basic Pay Scale CE Chief Engineer CFT Cubic Feet DS (Ops) Deputy Secretary (Operations) DDO Drawing and Disbursing Officer FD Finance Department FO Farmers Organization FY Fiscal Year GDP Gross Domestic Product I&P Irrigation & Power KM Kilometer LCC Lower Chenab Canal MAF Million Acre Feet MGD Million Gallon/day MTBF Medium Term Budgetary Framework MTDF Medium Term Development Framework No. Number O&M Operations & Maintenance P&DD Planning & Development Department O&B Operations and Budget PIDA Punjab Irrigation & Drainage Authority PMU Program Management Unit PRMP Punjab Resource Management Program R&M/M&R Repair & Maintenance SE Superintending Engineer UOM Unit of Measurement XEN Executive Engineer 2 Medium Term Budgetary Framework 2010-13 Section I 3 Section I 1. Introduction and background to the Department 1.1. Particulars of the Department Name of the Department Irrigation & Power Department, Punjab Name of the Principal Accounting Officer Malik Rab Nawaz Number of current budgets (2010-11) 26 No. of development schemes (2010-11) 74 Number of DDO’s 167 Staff strength (2010-11) 47,072 1.2. Vision statement 1 “To provide adequate, equitable and reliable irrigation supplies to the cultivable lands of Punjab aiming at enhanced agricultural productivity with focus on broad based institutional reforms.” 1.3. Policy objectives 2 Policy Objective Policy Objective Description Number 1 Provide adequate, equitable and reliable irrigation supplies to the culturable lands 2 Extend and improve drainage, flood protection, hill torrent management and command area development interventions in revering and rain-fed (Barani) areas 3 Implement measures to reverse environmental degradation and ground water mining 4 Introduce broad based institutional reforms aiming at transparency, efficiency and autonomy to sustain the resource base and infrastructure 1 Source: Medium Term Development Framework 2008-09, Government of the Punjab 2 Source: Medium Term Development Framework 2008-09, Government of the Punjab 4 Policy Objective Policy Objective Description Number 5 Support Irrigation functions by undertaking planning & research activities 6 Augment renewable energy resource base through installation of low-head hydel stations on canal falls. 1.4. Overview of Irrigation System in Pakistan 3 The Indus Basin Irrigation System (IBIS) is the largest contiguous irrigation system in the world. It consists of extensive network of three major storage reservoirs, 19 barrages, 12 inter-river link canals, 45 independent canal commands and over 122,000 water courses irrigating an area of 16 million hectares. Agriculture sector, being the second largest sector of the country, accounting for over 21 percent of GDP and absorbing 45 percent of the country’s labour force, mainly depends upon the consistent and equitable supply of irrigation water. The aims of water sector in Pakistan are: • Integrated water resource development • Conservation measures through lining if irrigation channels, rehabilitation of irrigation system and lining of water courses • Surface and sub-surface drainage • Protection of infrastructure from onslaught of floods • Institutional strengthening, capacity building and human resources development About 93% of total water sector allocation has been proposed for irrigation projects in 2010-11. The lining of irrigation channels in saline zones is being undertaken in Punjab, Sindh and Khyber Pukhtoonkhwa to save the seepage and other losses. At present, three dams and six canal projects are underway as well as revamping/rehabilitation of irrigation system of Sindh, Punjab and Khyber Pukhtoonkhwa have been funded in the coming year. Indus River System Authority (IRSA) is the apex authority for making water allocations to provinces according to the estimates of water availability for the coming season. Water allocations to provinces are made according to Water Apportionment Accord 1991 under which water is apportioned to the provinces including the formula for sharing any surplus river flows. The management and 3 Annual Development Plan of the Federal Government, 2010-11 5 maintenance of irrigation infrastructure is the responsibility of provincial irrigation departments. Part of this maintenance expenditure is met through abiana collection by the provinces, although its rate is very low as compared to actual operational costs. 1.5. Overview of Irrigation Sector in Punjab 4 Punjab Irrigation System is one of the largest contiguous gravity flow network in the world. The surface and ground water of Indus Basin constitute vital lifeline of Punjab’s agro based economy. Agriculture contributes 20% of Punjab’s GDP and provides employment to about 45 percent of the labour force. Over 90% of Punjab’s agricultural production is derived from farmlands irrigated by one of the largest irrigation systems in the world. This irrigation network is serving 21 million acres (8.4 million hectors) cultivable command area through 58,000 outlets having cropping intensities generally exceeding 125%. Economic opportunities in rural areas are still primarily limited to agriculture related activities. Continued growth in agriculture is, therefore, a key to the alleviation of poverty, which is significantly higher in rural areas as compared to urban areas. The irrigation system comprises of 13 barrages/headworks and 24 main canal systems. The salient features of Punjab Irrigation System are; Headworks/Barrages 13 Main Canals 24 Length of Main Canals and Branches 3,993 miles Length of distributaries and minors 19,191 miles Off-take capacity of main canals 1.2 Lac cusecs Off-take capacity of link canals 1.1 Lac cusecs Total outlets 58,000 Culturable Command