Annual Report 2008 - Ministry of Finance and Planning

2. Fiscal Developments - 2008
110
Box 2.8
Investing in Irrigation
“By the year 2016, irrigated agriculture will be transformed
in to a commercially viable and technologically
advanced sector. A more productive minor irrigation
sector developed through participatory approaches will
contribute to poverty reduction. New water resources
developed, through trans-basin diversions and other
means will lead to increased supply for irrigation and
other uses”.
At present, only 32 percent of the total water withdrawal
of the country is used for the productive purposes. Hence,
medium term focus is to direct more funds to improve the
productivity of water usage at least to 38 percent. Mahinda
Chintana: A Ten year Horizon Development Framework,
2006-2016 accords high priority for water resources
development.
Investment in this sector has been significantly increased over
the last few years mainly for rehabilitation and improvement
of existing reservoirs & schemes, development of new water
resources and for other works such as development of
flood protection, drainage and salt water schemes and for
carrying out research and feasibility studies etc. Funds have
been mobilized for multipurpose irrigation projects.
In comparison with 2006, the total expenditure for this sector
has been increased by 50 percent in 2008 is Rs.13 billion.
The budgetary provision for 2009 is Rs. 23 billion.
When compared with the total investment expenditure
of this sector, operational expenditure shows a marginal
increase from 2006 to 2008.
About 93 percent of the total operational expenditure
has been spent in 2008 for the personal emoluments. In
addition to the existing staff, it includes more than 150 new
recruitments for the Ministry of Irrigation, Dept. of Irrigation,
Mahaweli Authority etc. including engineers, engineering
assistants, drilling & hydrology field assistants, soil testers,
maintenance labourers, drivers etc. by filling the gap of the
human resources prevailed over several years hampering
the development programmes of this sector.
Owing to the domestic price and tariff revisions coupled with
the cost to operate pump houses to divert water, to control
the unexpected flood conditions under Gin and Nilwala rivers
in Southern Province, the expenditure incurred on fuel and
electricity in 2008 was 50 percent higher than that of 2007.
Additional funds were provided to meet this increased cost.
Investment Highlights
Total capital investment in 2008 under this sector was
Rs. 10.4 billion. In 2009, Rs. 20 billion has been allocated
considering Uma Oya and other activities of major projects
such as Moragahakanda & Dam Safety project.
Ministry of Finance and Planning Sri Lanka
Annual Report 2008