Fiscal Year 2016-17: Punjab government offers subsidy of Rs 65.453 million in budget

The Punjab government has offered a subsidy of Rs 65.453 million for the Kissan Package, wheat, Ramazan Package and Public Transport during the fiscal year 2016-17 against the last year figure of Rs 23.545 million with an increase of 178 percent. Agriculture is central to economic growth and development in Punjab. Its contribution to national agricultural economy is overwhelming.
Keeping in view the problems faced by the Agriculture Sector, the federal government had announced a comprehensive agriculture package - Kissan Package- in the FY 2015-16 to provide immediate relief to the farming community. The government of Punjab participated in the said package.
Under this package an amount of Rs 20,000.000 million was spent in the agriculture sector in Punjab in the shape of direct subsidies to wheat and rice growers to make available DAP at reduced price to farmers and payment of electricity duty for agricultural tube wells. Growth in the agriculture sector improves the incomes of poor household groups substantially, as it is the most pro-poor sector in terms of growth. The Punjab government had convened an agricultural convention in March 2016 and announced an Agriculture Package worth Rs 100.0 billion to be spent in next two financial years. An amount of Rs 50.0 billion would be spent on Agriculture Package for the FY 2016-17.