The Punjab government has allocated Rs 11.30 billion for the Irrigation sector in the budget 2008-09. This shows an increase of around 3 percent over the allocations made for the 2007-08 fiscal and constitute about 11.2 percent of the core Annual Development Programme (ADP) (2008-09) budget under the mid term development framework MTDF 2008-11.
Out of the total 103 schemes included in (MTDF) 2008-09, 60 schemes comprising 47 ongoing and 13 new have been targeted for completion by allocating 73 percent of outlay to the on-going and 27 percent to new schemes. Irrigated agriculture is the major determinant of economic growth potential of the province as it accounts for 26 percent of the GDP and caters for over 40 percent of the province work force.
Over 90 percent of agricultural output in Punjab come from farmlands irrigated by one of the largest contiguous irrigation systems in the world. The colossal irrigation conveyance network is serving 21 million acres (8.4 million-hectare) cultivable command area with cropping intensities generally exceeding 120 percent. The vast irrigation system in the province, however, faces major irrigation and drainage challenges with serious economic, environmental and social implications.
Hydraulic infrastructure has deteriorated and large deficits in O&M maintenance have led to sub-optimal service delivery levels characterised by low water conveyance efficiencies and inequitable water deliveries. Consequently, development in the sector needs to encompass holistic reform aimed at integrity and sustainability of irrigation infrastructure through improved irrigation management and service delivery levels.