Annual Report 2009-2010 - Department of Agriculture & Co-operation

Annual Report 2009-2010
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reflecting needs/crops/priorities of different
areas, taking agro-climatic conditions, natural
resource endowment and technology into
account. Funds are provided to states as a 100
per cent grant by the Central Government.
23.4 The allocation of funds to states is
dependent upon additional resources committed
by states for agriculture and allied sectors in their
state plans, and growth as projected and
generated. There are no prescriptions regarding
the projects, schemes, and other programmes
to be undertaken by states under the RKVY. The
scheme provides complete flexibility to states
to choose what is best suited to them for
generating growth so as to enable the country
to achieve four per cent growth in the agriculture
and allied sector during the Eleventh Plan.
23.5 Eligibility Criteria for Accessing RKVY
Funds: There are two eligibility conditions for
states to become and remain eligible for
receiving assistance under the RKVY. These are:
i) The baseline share of the agriculture and
allied sectors in the total state plan (excluding
RKVY funds) is maintained. The baseline is
the moving average of the share of
expenditure in agriculture and allied sectors
in the state plan during the previous three
years.
ii) State and district agriculture plans have been
formulated.
23.6 Both these criteria have been relaxed in
the initial years of the scheme., as the states
required some time to prepare SAPs, after
completing the exercise of preparing
Comprehensive District Agriculture Plans(CDAPs)
in accordance with Planning Commission
guidelines issued in 2008. The criterion of
maintaining baseline expenditure has been
relaxed to make it higher than the minimum of
last three years expenditure. However, this does
not take away the incentive of higher allocation
to states, as state-wise allocations are still
dependent on additional funds actually allocated/
spent by states on the agriculture and allied
sectors than the previous year.
23.7 Criteria for Allocation of Funds:
Allocations by the Central Government under the
scheme to each of the eligible states is based
on three parameters for un-irrigated areas, the
growth potential, and additional allocation to the
agriculture and allied sectors out of state plan
funds with a respective weightage of 20 per cent,
30 per cent, and 50 per cent. The allocation
formula is given in Table 23.1:
Table 23.1: Formula for allocation of funds under RKVY
S. No. Parameter Weight
1. The percentage share of the net un-irrigated area in a state to the net unirrigated
area of the eligible states. Eligible states are those states that are
eligible for availing of the RKVY scheme based on their baseline level of
expenditure under the state plan, and preparation of district and state
agricultural plans
20 %
2. The projected growth rates to a base year Gross State Domestic Product
(GSDP) for agriculture and allied sectors (say, 2005-06) will be applied to the
GSDPs to be attained by the end of the Eleventh Plan by the states. The
parameter will be set in terms of the inter-state proportion of these GSDPs
projected to be reached by the state at the end of the Eleventh Plan
3. Increase in total Plan expenditure in the agriculture and allied sectors in the
previous year over the year prior to that year
30 %
50 %