Macro Management Unit

***

Title

Macro Management of Agriculture Scheme - Supplementation/Complementation of States efforts through Work Plan (Macro Management)

Type

Centrally Sponsored Scheme

Objective

Macro Management Scheme will aim at all round development in agriculture through Work Plans prepared by States.  These include :

• Reflection of local needs/crop/regions specific/priorities etc.

•  Providing flexibility and autonomy to States;

• Optimum utilization of scarce financial resource

• Maximization of returns;

• Removal of regional imbalances.

Salient Features

It has been decided to move away from schematic approach to Macro Management mode by integrating 27 Centrally Sponsored Schemes listed at Annexure I.  The previous pattern of rigid uniformly structured Centrally Sponsored Schemes, permitting little or no flexibility, which resulted in large unutilized balances with States has been dispensed with.  Integration of Centrally Sponsored Schemes under Macro Management approach will enhance the productivity of support programmes and accord greater flexibility to State Governments to develop and pursuer activities on the basis of regional priorities.  It is, thus, a major step towards achieving decentralization in pursuance of restoring primacy of States in agricultural development planning.  The Central Government will supplement/complement the State Governments’ efforts through regionally differentiated Work Plans comprising crop/area/target group specific interventions, formulated in an interactive mode and implemented in spirit of partnership with the States.

Pattern of assistance

The outlay of the Work Plan would be shared by the Centre and the States in the ratio of 90:10.  In the case of North Eastern States, however, the entire expenditure will be borne by the Government of India.  Central assistance for Work Plans will be in the ratio of 80% by Grants and 20% by Loans.

Eligibility

All States/UTs

Person to be contacted

Ms. Anjali Prasad,

Joint Secretary,

Macro Management,

Department of Agriculture & Cooperation

Krishi Bhawan, New Delhi

Date of Start

November 2000

Guidelines

The Government has approved separate guidelines for implementation of the Scheme.  According to these guidelines the 50% of the allocation is to be released as First Instalment to the States/UTs.  The release of Second and final instalment is governed by the prescribed conditions.  A copy of the guidelines is at Annexure II, III & IV.

Implementation Status

The position regarding Budget Estimates, Revised Estimates and expenditure incurred under the scheme for the years 2000-2001 2001-2002, 2002-2003 & 2003-04 is as indicated below:         

                                    (Rs. in Crores)

During the current financial year viz. 2004-05 a sum of Rs. 719.94 Crores has been provided in the Budget for implementation of the scheme.  Out of 719.94 Crores, a sum of Rs. 695.00 Crores has been earmarked for release to the States/UTs.  The State/UT wise allocation for 2004-05 is enclosed.  Work Plans for 2004-05 in respect of most of the states have been discussed/finalized and the 1^st instt. amounting to Rs. 328.74 Crores has been released (details enclosed- Annexure V)  to the States/UTs

Subsidy

Subsidy is available under the Scheme on various components including agriculture implements such as Tractor, Power Tiller, Power Thrashers, Sprinklers and Plant Protection Equipments.  Subsidy is also available on certified quality seeds and IPM demonstrations.  Subsidy per farmer or per activity should not exceed 25% of the cost or the present subsidy level approved under 27 identified schemes, whichever is lower.

Physical Monitoring

Monitoring of the relevant component of the Macro Management Scheme is the responsibility of the concerned Subject Matter Division.  The Subject Matter Divisions concerned have been requested to obtain and consolidate the information in the prescribed proforma (Annexure-VI).  States are required to furnish the Utilization Certificate in the prescribed proforma (GFR-19A) (Annexure-VII).

 Annexure - I 

LIST OF CENTRALLY SPONSORED SCHEMES

Annexure-II

DECISIONS OF GOVERNMENT ON THE SCHEME – MACRO MANAGEMENT OF AGRICULTURE

1. The work plan would indicate the physical targets and the benefit stream in terms of area, production level, productivity etc.
    

2. The outlay of the Work Plan would be shared by the Centre and the States in the ratio of 90: 10 respectively.   In the case of North-Eastern States, however, the entire expenditure will be borne by Government of India.
    

3. The Central assistance to the States for the Work Plan will be in the ration of 80% Grant and 20% Loan.
     

4. New initiative by State Government will be governed will be governed by the following criteria :-
    

    

   -   It would not be covered under any other approved Scheme of Central Government.

              

   -     It would not be part of the any on-on-going State Scheme.

    

   -     Expenditure on new initiative would not be more than 10 % of the allocation to a State under the Scheme of Macro Management.
     

5. There should be cap on subsidy to farmers incorporated in the  Work Plans. Subsidy per farmer or per activity should not exceed 25 % of the cost or the present subsidy level approved under 27 identified schemes, which ever is lower. However, considering the difficulty in operationalising this decision in the middle of the Plan period, it may be brought into effect from the 10th Plan
    

6. While the Union Department of Agriculture & Cooperation would have flexibility for reallocation, expenditure under the individual component would not be in excess of 20% of what has been incurred in the last year.
    

7. Creation of posts and purchase of new staff vehicles should not be included in the Work Plans.

Annexure – III

GUIDELINES FOR THE IMPLEMENTATION OF MACRO MANAGEMENT SCHEME

1. The permissible carry over of unspent balance in the first year of operation would be 25% of the annual allocation.  This permissible carry over would be reduced by 5% every year so that the permissible carry over is brought down to 10% of annual allocation over a period of 4 years.
     

2. 50% of the annual allocation would be released as first installment of a financial year.
     

3. The release of second and final installment would be considered on the fulfillment of the following conditions. 
    

   (i)      Utilization Certificate for the funds released up to the previous financial year.

    

   (ii)    Expenditure of at least 60% of available funds i.e. unspent balance of the previous year plus the releases in the first installment.

    

   (iii)    Full release of the corresponding share of the State Government.
    

4. The second release would be made during the period from October to March.  The request for second installment may be made by the implementing agencies (States/UTs) by October.  Releases would be made on graded basis depending on the time of reporting utlization as also the receipt of complete proposal for second installment.  The graded release would be on principles as indicated below :- 
    

   Proposals received in  : 

    

   October to December   -            50% of allocated funds

    

   January                         -            40% of allocated funds

    

   February                       -            30% of allocated funds

    

   March                           -            20% of allocated funds

   
    

5.  Any excess over the permissible limit of 25% carry over will be adjusted in the 2nd installment.

Annexure-IV

 GUIDELINES FOR THE STATES MACRO MANAGEMENT OF AGRICULTURE

Macro Management Mode is a major step towards achieving decentralization in pursuance of restoring primacy of the States in agricultural development planning.  Under the Scheme for Macro Management of Agriculture, the States have the freedom to develop and pursue activities on the basis of their regional priorities through the Work Plans.

Work Plans

• The States will prepare their Work Plans in consultation with the Subject-Matter-Division in the Deptt. Of Agriculture & Cooperation Ministry of Agriculture, Government of India.

New Interventions

• Where necessary, new interventions proposed by the States are also considered for inclusion the Work Plans provided:
    
  i)        It is not covered under any other approved scheme of Central Government or is not apart of any on-
            going State scheme.
         
  ii)      The expenditure on the new initiative would not be more than 10% of the total allocation to the State
            under the macro Management Scheme.

Subsidy

• Subsidy payable under the Work Plan should not exceed the present subsidy level approved under 27 CSS subsumed into Macro Management Mode.

Release of Central assistance

• The Central assistance to the States/UTs will be released as per approved guidelines by the Ministry Ministry of Finance and will be routed through the State Agriculture Deptt. Which is the Nodal Deptt. under the Scheme.  The State Agriculture  Deptt. Which is the Nodal Deptt. under the Scheme.  The State Agriculture Deptt. Will make further allocations to the Implementing Deptts. Etc in their State.  In order to ensure that funds are released by the State Agriculture Deptt. to other participating agencies without delay, the order re-allocating the funds should clearly indicate the quantum of  funds earmarked for each implementing agency.  To facilitate coordination among the various implementing agencies, the Standing Committee set up under APC/Chief Secretary for this purpose should be activated.

   

               For effective implementation of the Scheme, timely release of funds is necessary.  It shall, therefore, be attempted to release the first instt. of funds during April each year.  In order to release the first instt. i.e. 50% of the annual allocations under the Scheme during April, the Deptt. of Agriculture & Cooperation propose to make suitable provisions in its “Vote of Account” in the future.  It is, therefore, necessary that the States take immediate action for further allocation of funds to the various Implementation Agencies, after the release of 1st instt. of Central assistance.

Utilization of Central assistance

• The second installment would be released on a graded basis depending upon 60% utilization of available funds (unspent balance of the last year plus the releases in the first installment) as indicated below:
     

   Proposal received in:

   

              October to December                           - 50% of allocated funds

   

              January                                                      - 40 % of allocated funds

   

              February                                                      - 30 % of allocated funds

   

              March                                                          - 20 % of allocated funds
     
   

  The release of second installment would also depend upon furnishing utilization certificate for the funds released upto the previous financial year.  Full release of the corresponding share of the State Government, would also be required.

   

  States should ensure that the Central assistance released under the Scheme is utilized in accordance with the approved Work Plan for the year.  Since the amount of the second & final installment of Central assistance will depend on the progress of utilization of funds by the States, the State should ensure that the funds released are utilized promptly  and “Progress Reports” sent to the Deptt. of Agriculture & Cooperation at the earliest.  It may be pertinent to mention here that the performance of the States/UTs will be reflected in the performance Budget document of this Ministry.  The non-utilization of Central assistance will hinder further release of funds, as the cap on the permissible carryover of funds which will be applied from 2001-02 onwards, will be enforceable

   

   6.      The permissible carry over of unspent balance would be 25% of the annual allocation during current financial year, i.e., 2001-02.  This permissible carry over limit would be reduced by 5% every year so that the cap is brought down to 10% of annual allocation over a period of 4 years.  Any excess over the permissible carry over limit would be adjusted in the second installment.

Special Component Plan (SCP) and tribal sub Plan (TSP)

•  As per guidelines of the Planning Commission, each State is required to formulate Special Component Plan/Tribal Sub Plan by earmarking a portion of Plan funds for utilization on schemes meant for welfare of Scheduled Castes/Tribes.  The States should ensure compliance of those instructions and furnish the details of the interventions likely to benefit the SC/ST community, included in their Work plans.

Monitoring of the progress of the Scheme

• The responsibility for monitoring progress of activities under the Work Plan rests with the concerned Subject Matter Divisions in this Ministry.

Formulation of proposals for the Xth Five Year Plan

• States may ensure submission of their proposals for X Five Year Plan and for the year 2002-03 at the earliest.  The programmes/schemes for Tenth Plan are to be formulated keeping in mind the implementation of National Agricultural Policy and Action Plan for doubling food production. Tentatively, the outlay for the Work Plan for 2002-03 may be fixed at twice the provision available for 2001-02.  The size of the Tenth Plan may be taken as five and one half times that of the Annual Plan of 2002-03.  Proportionate revision will be effected when actual out-lay for Tenth Plan is known.

   

  In view of the priority accorded by the Government of India to Natural Resources Management and to horticulture development, it is felt that Work Plan of the State must reflect the critical significance of these sectors.  Accordingly, it may be ensured that the proportionate allocation in the Work Plan for natural resource management (NWDPRA, RVP & FPR, etc) and horticulture is not less that the average proportion of funds released under the corresponding schemes to the total releases under the 27 erstwhile Centrally Sponsored Schemes during the Ninth Plan period as a whole (including the allocations made under Macro Management mode in 2000-01 and 2001-02 

 Annexure-V

Macro Management of Agriculture

Allocation for 2004-05 and release of 1^st instt.

                                                                                                       (Rs. in crores)

Annexure -VI

WORK PLAN PERFORMANCE PROFORMA

                          PHYSICAL AND FINANCIAL TARGETS AND ACHIEVEMENTS

                                                             (Rs. In lakhs)

Annexure - VII

FORM GFR 19-A

(See Government of India’s Decision (1) below Rule 150)

Form of Utilization Certificate

2. Certified that I have satisfied myself that the conditions on which the grants-in-aid was sanctioned have been duly fulfilled/are being fulfilled and that I have exercised the following checks to see that the money was actually utilized for the purpose for which it was sanctioned.

Kinds of checks exercised

            1.

            2.

            3.

            4.

            5.

Signature......................................................

Designation..................................................

Date..............................................................

[G.I., M.F., O.M. No. F. 14 (1)-E-II (A)/73, dated the 23^rd April, 1975 ]

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