56
S
tate
of
I
ndia
’
s
L
ivelihoods
R
eport
2015
III. Government funding for
the sector
As a proportion of the total outlay for agri-
cultural sector, the share of livestock fell
from 11.2 per cent in the 2nd Five-Year Plan
to 3.6 per cent in the 9th Five-Year Plan but
increased to 9.3 per cent during the 11th
Five-Year Plan and about 12 per cent in the
12th Five-Year Plan period. Working group
of the Planning Commission recommended
a budgetary outlay of
`
315.60 billion for the
12th Five-Year Plan for animal husbandry
and dairy sector to achieve a growth rate of
6 per cent. However, actual allocation for the
12th Five-Year Plan period is
`
120.19 billion.
Allocation of funds to the Department of
Animal Husbandry, Dairy & Fisheries as a
proportion of the overall allocation to agri-
cultural sector has been inadequate over the
last several Plan periods in spite of rising con-
tributions of the livestock sector toGDP. The
growth needs of a sector with high potential
are not being fully supported. Overall public
spending is equivalent to less than three per
cent of livestock GDP and about 0.2 per cent
of total public expenditures. Thus, the budget
support for dairy has not been commensurate
with its contribution to growth and GDP.
The revised expenditure by the GoI on
animal husbandry sector in 2014–15 is about
40 per cent of the budget spent in 2013–14.
The allocation for the current year too is well
below the level of expenditure achieved in
2012–13. The states are expected to spend
higher amounts for animal husbandry as
a number of livestock programmes have
been made the responsibility of the states in
the aftermath of the financial devolutions
arising from the 14th Finance Commission
(Table 4.3).
Bulk of the public investment for live-
stock development comes from the state
governments. The central government
contributes about 10 per cent to the total
investment. However, interactions with
some of the state departments and also an
analysis of the past trends
3
reveal that about
90 per cent to 95 per cent of the state’s bud-
get goes towards recurrent expenditures to
meet salaries and other operating expenses.
Limited budget is available for investments
that improve production, productivity and
value addition in the field.
According to the report of the Working
Group on Animal Husbandry and Dairying
for the12thFive-Year Plan, the 11thFive-Year
Plan had a total of 29 schemes (21 in animal
husbandry, six in dairy, one under the spe-
cial package for suicide-prone districts and
one under the externally aided project). The
centrally sponsored schemes of animal health
and disease control and National Project
for Livestock Development accounted for
a major share of the total outlay for animal
husbandry. The overall performance of most
of the schemes has not been up to the desired
levels due to funding pattern, poor flexibility
etc. Most of these schemes were stand-alone
with meagre financial outlay.
The GoI launched the NLM in 2014–15
with an outlay of
`
24 billion for growth of
the livestock sector. The NLM focuses on
improving the availability of quality feed and
fodder, risk coverage, effective extension,
improved flow of credit and organisation
of livestock farmers. The new government
laid emphasis on indigenous animal devel-
opment and launched the Rashtriya Gokul
Mission. It made a modest beginning to
revitalise the indigenous milk production
system with an outlay of
`
5 billion to be
implemented during the 12th Five-Year Plan.
Overall, both central and state govern-
ments have to increase their capital and
programme expenditure on dairy sector.
The dairy sector, however, has attracted
considerable private investment in process-
ing, value addition and marketing.
Table 4.3:
Budget allocations for livestock sector
Actuals
2013–14
Budget
2014–15
Revised
2014–15
Budget
2015–16
Department of Animal Husbandry,
Dairying & Fisheries (
`
Billion)
17.49
11.33
9.09
11.33
Source:
Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, GoI.
3
The World Bank.2010. India–National Dairy
Support Project NDSP. Project Appraisal Document,
/
en/2010/04/12157650/india-national-dairy-support-
project.
