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BUDGET YEAR – 2013
Northern Provincial Council Jaffna.
Page No 1 Background 1
Socio - Economic Condition
Natural Resources and Development in the Northern Province
Sectoral Achievements and Requirements
Priority Issues and Needs
Provincial Development Priorities (Future Needs)
Investments - 2013
Policy Statement for the year 2013
Northern Provincial Council
I am pleased to release the Annual Financial Statement and Policy Statement of the Northern Provincial Council (NPC) for the year 2013. The Government is already implementing a programme called “Vadakkin Vasantham” Development Programme to rehabilitate the Northern Province. Hence, the policy statement of the year 2013 is largely influenced by the Government’s strategy towards rehabilitation development of the Northern Province.
The Annual Financial Statement sets out the various limits and provisions available for the Provincial Ministries, Departments and other Institutions for various service deliveries and functions, while the Policy Statement briefly narrates the frame conditions for various sectoral activities, performance, and sets out priorities and targets for various service programmes for the year 2013. Though year 2013 will be the 7th year of operations since the creation of the Northern Provincial administration, it continues to maintain consistency,
continuity & smooth transition of the development efforts in the province. During the past 6 years, it managed to introduce various operational manuals, guidelines, procedures and systems to pave the way for a better footing for NPC administration.
The NPC continued to abide by the budgeting principles promoted during the last 2 decades and adopted a more rigorous path of following practices and concepts relating to Planning, Financial Management, Budgeting & Good Governance. During the preparation of the current year’s financial statement, more rigorous practices were followed in the estimation process, which involved validation steps; re- scrutinization & detailed background work. Thus the financial statement has been prepared and presented institution wise.
For budgetary purpose development sectors have been grouped under the following 5 ministries.
1) Ministry of Local Government, Relief and Rehabilitation, Cooperatives, Rural Development, Industries, Social welfare and Probation and Child Care Services. • • • • • • • Local Government. Rural Development. Co-operatives. Industries. Social Service. Probation and Child Care Services. Relief and Rehabilitation.
2) Ministry of Agriculture, Livestock Development, Lands, Irrigation and Fisheries • • • • • Inland Fishing. Agriculture. Animal Production & Health. Land Administration. Irrigation.
3) Ministry of Health and Indigenous Medicine • • Health. Indigenous Medicine.
4) Ministry of Education, , Cultural Affairs and Sports • • • Education. Sports. Cultural Affairs.
5) Ministry of Infrastructure Development and Reconstruction • • • Road Development Buildings Reconstruction
3. Socio Economic Condition
The Northern Province covers about 13.2% of the land mass of Sri Lanka. Its total extent, around 8,846.83 sq. km consists of five districts namely Jaffna and its isles, Kilinochchi, Mannar, Mullaitivu and Vavuniya have an estimated population of 1.186 mn in mid of 2012. It is still pre- dominantly an agricultural region having crops, livestock & fisheries as pivot sub sectors. The province nearly has 1/3 of the coastal sea and around 250,000 ha. of cultivable land, most of these resources are now accessible to the people to engage in economic activities.However, its contributions to the GDP by agriculture sector has declined during the conflict period. Contribution of these sectors has been gradually increasing from the year 2010 and this trend has to be strengthened.
Prior to the conflict, i.e. in 1980s, the contribution to GDP by the Northern Province was around 7%. Later this suffered a negative trend. However, reflecting the rapid expansion in income generation activities in the Province, the GDP growth rate was highest in the province at 27.1 % in 2011 and it’s share 3.7% to the national GDP and there is an improvement when compared to 3.4% recorded in 2010.This shows that there are potentials in the Northern Province and that should be tapped. The structure of the provincial economy has not changed over the period. However, Agriculture, including Fisheries and Animal husbandry which is the mainstay of the economy has shown positive growth after 2009. The growth rate has now reached a slight positive phenomena resulting in a per capita Income of Rs 200,000 in 2011 and as it was Rs 159,000 in 2010.
Resettlements of IDPs from the Welfare Centers have been completed in all 5 Districts in the Province. Total numbers of displaced people were estimated at about 353,272 and all of them have been resettled. In terms of productivity in paddy sector, Northern Province in the year 2011 and 2012 had recorded highest yield in the country. Due to the proper support by the Government in the Northern Province, the production of the crop, Fisheries and Livestock sectors also have been gradually increasing and the market for agriculture products has expanded. Therefore, the agricultural sector
contributed 24.2 % of GDP composition to the provincial economy in 2011.
4. Natural resources and Development in the Northern Province
The Northern Province is rich in natural resources in its extensive coastal area, in its dense forests and its mineral deposits. Forest resources are largely intact despite many decades of conflict and form a considerable percentage of the total forest cover in the country. The Province is rich in minerals resources needed for construction, respectively quarry metal and sand for bricks obtainable from extensive sand dunes in the Jaffna peninsula. The land is generally flat and undulating with no significant elevation, however the highly diverse coastal belt more than compensates, such physical features with lagoons, bays, salt flats, wetlands, coral reefs, islands and islets, and estuaries which are some of the prominent coastal features that are important both ecologically and economically.
Water Resources The Northern Province does not have a single perennial river, and has very limited seasonal streams and rivers. Water storage has been traditionally through built irrigation tanks. The area belongs to the Dry Zone of Sri Lanka with low annual rainfall. Ground water surveys done prior to the conflict indicate that intensive agriculture, especially paddy, cannot be supported without adequate replenishment of surface water storage. Water scarcity is a main constraint in many parts of the province, even for drinking and domestic use. The major tank cascade systems and existing major irrigation schemes (Iranamadu, Giant’s Tank, Pavakkulam and Kalmadu) should be closely examined to determine the productive capacity of agriculture and irrigation, plus quality of drinking water available in the northern districts.
Marine and Coastal With 40% of the country’s coastline, the province has immense potential for fisheries, aquaculture and tourism. While the existing marine and lagoonbased fishery industry need to be modernized and reequipped to enable the population to benefit from the rich and under-tapped fishing grounds, new aquaculture-based industries could be established to elevate productivity and offer more livelihood options for young people. The main fishery areas are in Jaffna, Mullaitivu and Mannar Districts. For this purpose the fishery potential, looming threats and important conservation areas (such as sea grass beds and coral reefs) should be surveyed and mapped so that exploitation of the resource is done within the limits of sustainability with adequate emphasis on conservation and
protection for future use.
Mineral Resources One of the greatest issues of current importance is construction materials. Out of the construction materials the required sand and quarry metal are considerably available in the Province. In addition the province has limestone deposits, clay for bricks and tiles and beach mineral sand. Some scientific option of possible oil deposit off the Gulf of Mannar has not been fully explored yet. A survey of the quantity and quality of building materials available in the north and their extraction capacity is necessary because of the huge demand brought on by reconstruction and development projects that involve largescale construction. Forests and Wildlife The North has by far the largest extent of dry monsoon forests in the Island. The forest cover has remained intact largely despite the conflict and due to lack of development of the province. Kilinochchi, Mullaitivu and Mannar districts have vast forest cover, while Vavuniya has partial in forest. Jaffna has no significant forest areas. The important wildlife areas (already gazetted) are Wilpattu north, Madhu road, Giant’s Tank, Chundikulam and Kokilai. But this does not take in to
consideration new biodiversity hotspots and other ecologically important areas (river catchments, salt marshes, lagoons and estuaries, islands, arid zones of Mannar etc).The forest and wildlife resources is important as an economic resource for forest products (non – timber) and tourism. History and Culture There are many areas in Jaffna and Mannar that bear exceptional
archaeological value. These include ancient temples and sites mentioned in chronicles, sites of pre-historic significance and old churches and temples of high cultural value to the northern people. Many of these sites have been recorded in documentation of the
Archaeological Department, but there could be many that are unrecorded and undiscovered. The value addition prospects to local tourism are immense, especially sites such as Thiruketheeswaram (Mannar), Nallur (Jaffna) and Madhu Church (Mannar) which are mentioned in this regard.
5. Sectoral Achievements and Requirements
For the year 2012 budget exercise sectoral development and service needs have been analyzed. National Policy objectives articulated into provincial objective and priorities into provincial development framework. This exercise is based on updating of provincial development frame work. For the budgetary purpose, development sectors have been grouped under the 5 Ministries consisting of 24 departments.
Agriculture Agriculture is the dominant productive sector in the Northern Province. Total allocation of Rs. 101 Mn. (including Line Ministry funds) has been allocated for the year 2012 to the sector and total expenditure met Rs 58 Mn up to November 2012. However, under the PSDG Rs. 88 Mn only was allocated for the year 2012 out of which 52 Mn was spent up to November 2012. Result of the rapid development of the agriculture sector in the Northern Province; paddy harvesting reached the level of 311,384 mt in 2012 and the Province was able to supply its surplus to other parts of the country. 88,000 ha highlands brought
under annual crops, perennial crops and homesteads cultivation. Nearly 20,000 farmers have been benefited through subsidy and technical transformation programmes in 2012. Rs 135 Mn is expected to meet the sector development in 2013. The sector will focus on production enhancement, reduce pre and post harvesting losses and institutional resource development activities in 2013 as its priority areas. The sector major developmental thrust areas are as follows; 1. Increase crop production 2. Minimize Pre and Postharvest losses 3. Market opportunities, Information, Linkages and Networks 4. Enhancement of Capacity building 5. Environmental conservation and protection 6. Good governance
Inland Fisheries Inland Fisheries is another key livelihood sector in the Province. It has been integrated with irrigation and agriculture. Rs.17 Mn was allocated under PSDG for 2012. Remarkable Achievement in the sector in 2012 is establishment of Shrimp Culture in Brackish water Lagoon in Kilinochchi which is one of the pilot project in Sri Lanka implemented by NPC in collaboration with NAQDA. Rs 05 Mn invested for the pilot project. This project is expected to harvest 40 Mt tiger prawns. National Aquaculture Development Authority of Sri Lanka (NAQDA) and Food and Agriculture Organization (FAO) are also involved to invest in the province to develop the inland fisheries through their various programmes such as construction of hatcheries, mini nursery and improvements of tanks. Rs 14 Mn is expected to be allocated for 2013 to meet the sector development. Capacity development to the fishermen and fishermen’s cooperative societies and promotion of inland fisheries will be the focus area for 2013 activities in the sector. The sector major developmental thrust areas are as follows 1. Promotion of Inland fishery & Aquaculture 2. Freshwater Fish processing & marketing 3. Capacity development of fishermen & fisheries cooperative societies 4. Good Governance
Irrigation Irrigation sector is one of inter related sector to the agriculture and inland fishing. Therefore, hundred thousands of people in the province are dependent on irrigation for their livelihood activities. So, this sector takes a vital role in the Province. 45 medium irrigation schemes and 3 major irrigation schemes come under the Provincial Irrigation sector. There are 2,066 tanks and ponds also under minor irrigation. Nearly 70,181 acres irrigable area come under irrigation facilities in 2012. Rs. 4,408 Mn has been allocated for the year 2012 under government funds and project funds. Of which Rs 1,665 Mn has been spent up to November 2012. Based on the need assessment for the year 2013, Rs 2,739 Mn is expected through various sources of funds. However, the Finance Commission has allocated Rs. 30 mn for the year 2013. Appropriate water saving technologies, drainage and flood control facilities will be improved in 2013. The sector major developmental thrust areas are as follows; 1. Productivity Improvement 2. Improvement of Physical assets 3. Developing and Managing Groundwater Potential 4. Empower the farming community for sustainable management of irrigation schemes 5. Improving human and Institutional resources for service delivery and good governance
Livestock The livestock industry is becoming an important field for entrepreneurs in the Northern Province. This sector is considered as an additional source of income for the farming society in the region. Several stakeholders i.e. government sector, private sector and NGOO are involved to strengthen the sector through their various projects and programmes. Rs. 468 Mn was allocated to the sector in 2012 by the involvement of all the stakeholders. In which Rs 54 Mn was allocated under PSDG. Average milk collection per day has been increased from 24,000 liters to 30,000 liters per day in 2012. Poultry egg and meat production has been increased by 20% over 2011. Infrastructure facilities also were improved to provide better veterinary service to the breeders. Rs 364 Mn is expected to meet the sector development in 2013. Of which Rs 30 Mn has been
allocated by the PSDG for 2013. Main focus to the sector in 2013 are increase of the milk collection as 40,000 liters per day, increase the poultry meat production by 75% and increase the self sufficiency in egg production. The sector major developmental thrust areas are as follows; 1. Food for life at household level 2. Productivity enhancement in Livestock and Poultry/ technical transfer 3. Maintaining healthy livestock population 4. Strengthening market facilities for Livestock products 5. Institutional capacity enhancement 6. Improvement of Livestock feed resources 7. Good governance
Education The Education sector needs significant changes at all levels to bring Sri Lanka as a Knowledge hub. The Northern Province takes this opportunity to accomplish the national goal according to the “Mahindha Chinthana”. Total allocation Rs 1,505 Mn has been allocated for 2012 including PSDG and other source of funds. Of which Rs 690 Mn was spent up to November 2012. Rs 255 Mn was allocated under the PSDG for 2012. The numbers of functional schools have been increased to 966 out of 1,047. National programmes such as 1,000 schools and 5,000 feeder primary school programmes are being successfully implemented in the Province. Child friendly approach has been introduced in 500 schools. Mahindodaya Lap facilities have been provided to 90 schools in the Province. Infrastructure facilities are also continuously provided wherever the
requirements are identified through various sources. Therefore, the adult literacy rate increased to 87% and the survival rate also increased to 71% in 2012. Sports and cultural affairs also are included as sub sectors. Rs. 1,351 Mn is expected to meet the sector development for 2013 to fulfill educational needs through various source funds including PSDG, line ministry and Project funds. In 2013, the sector focus will be on developing full fledged secondary schools and their related feeder primary schools, rehabilitation and reconstruction of resettled schools and promoting social cohesion among various communities across the province and the country. The sector major developmental thrust areas are as follows;
1. Increasing equitable access to primary and secondary education 2. Improving the quality of primary and secondary education 3. Providing non – formal education opportunities to children who cannot cope up with the formal system 4. Ensuring high quality service delivery of education 5. Developing capacity of teachers 6. Improving Health Promotion in schools
Health Health is the wealth of our society; therefore, the health sector takes prominent role in the Province. The sector serves through western medicine and eastern medicine to the people in the Province. Primary, Secondary health care institutions, curative as well as preventive institutions are mainly managed by the Provincial Health Department. Total allocations of Rs. 1,611 Mn. have been allocated under PSDG, line ministry fund and project funds in 2012. Out of which Rs. 1,167 mn have been spent up to November 2012. Maternal and child health care services have been extended to the peripheral areas and human resource capacities also strengthened in 2012. As a result, maternal mortality rate and infant mortality rate have been reduced. Dengue eradication
programme and local level nutrition intervention programmes also have been implemented in 2012. Rs. 1,600 Mn allocation is expected for the health sector development in 2013 however, the Finance Commission has allocated Rs 136 Mn under PSDG. Several Donor funded projects also support this sector. For the year 2013, preventing non communicable diseases will be focused. The sector major developmental thrust areas are as follows; 1. Maternal and Child Health Services 2. Prevention and control of Communicable and Non-Communicable
Diseases (CD & NCD) 3. Comprehensive Curative care delivery 4. Nutrition 5. Health of the vulnerable community 6. Good Governance
Local Government The Ministry of Local Government consists of 6 Departments. They are Local
Government, Co-operative, Industries, Social services, Rural Development and Probation & Child Care to execute the functions to fulfill the basic needs of the people and to uplift their day to day livelihood activities. The total amounts of Rs. 600 Mn have been allocated for the sectors in 2012. Out of this Rs 466 mn have been spent up to November 2012. Water and sanitation facilities have been provided to the resettled areas in 2012. The local roads and marketing facilities also have been improved. 130 nos. Community based organizations have been strengthened and empowered in the sector. Micro credit loan
facilities were provided for investment in the livelihood activities in 2012. Technology transformation projects were implemented in rural industries. Rs 168 mn has been allocated by Finance Commission for the year of 2013 for these sectors. The sector focus is on reconstruction of the infrastructure
facilities in the resettled areas; improve the human capital for better service delivery and improving of the market network for rural producers in 2013. The sector major developmental thrust areas are as follows; 1. Establishment and operation of quality rural roads network in Northern Province 2. Provision of Public utility services 3. Enhancement of Local authority service and waste management 4. Ensuring access of alternative energy to non national grid area 5. Promotion of Local Good Governance
Roads Northern Province has about 1,960 Km Provincial Roads and 7,600 Km of Rural Roads. Road Development Department, Northern Province is responsible for the construction and maintenance of 1,960 Km C & D class roads. Out of this 1,115 Km C & D class roads were metal laid and balance were gravel roads. Rs 2,599 Mn have been allocated to the road sector development in the Province in 2012, which covered the PSDG and project funds (CARE, NRCP and PRP). Of which Rs 2,249 Mn was spent up to November 2012. Nearly 250 Km roads will be reconstructed under the Ministry of Economic Development projects. In 2013, more fund allocations are expected to improve the sector. Rs 3,115 Mn is
expected through government and project funds, and the Finance Commission has allocated Rs. 60 Mn under PSDG for the year 2013. More allocation are expected from the project funds through Ministry of Economic Development. The sector major developmental thrust areas are as follows; 1. Establishment and operation of a quality road network in the province 2. Road safety improvements for safe transportation 3. Minimizing adverse environmental impacts 4. Enhancing institutional capacities to improve the performance of the road sector 5. Good Governance
Tourism Tourism is also one of the growing sectors in this Province. The province attracts domestic as well as foreign tourists. The sector provides direct and indirect benefits to the Province. The Government also emphasizes the development of the tourism sector in several ways. There are potential places to invest in tourism in the Province. Rs. 33 Mn has been allocated for this sector in 2012. Of which Rs 23 Mn worth of works completed up to November 2012 such as improvement of access roads, beautification of old park and tourist guide book publication are the remarkable works in 2012. For the year 2013, the Finance Commission has allocated Rs 26 Mn. Improving the access to the tourist destinations, developing comfort center with Children’s Park and publication of tourist information material will be the key activities in 2013. The sector major developmental thrust areas are as follows; 1. Diversification and Development of tourists’ attraction and marketable products 2. Marketing and Promotion of Tourism 3. Ensuring the income generators for the local community through tourism promotion 4. Good Governance
6. Priority Issues and Need
The following issues encountered by the NPC in the year 2012, will continue in future unless an effort is made for the improvement in the immediate future. 1. Technically qualified personnel and high quality management to be increased in the province. 2. More housing and Basic Infrastructure Facilities 3. Strengthening & stabilizing the nutritional status of people 4. Need of more employment facilities 5. Growth Rate to be increased. 6. Vulnerable - children, widows, elders & Disabled require more attention 7. Finance – Developing further the Institutional / individual capacity 8. Enhancement of Marketing facilities 9. Development of production Infrastructure 10. Technology to be further increased 11. More inputs to be made available in production sector
Therefore, with the full knowledge of these conditions and based on the review of the current socio – economic situation the Northern Provincial administration has identified its Strategic Result Areas for priority actions. Similarly each sector has identified its Key Result Areas which will contribute to the achievement of goals in the Strategic Result Area of the Provincial Administration.
7. Provincial Development Priorities (future needs)
Following are the development priorities identified for directing its investment during 2013 1. Restoring the livelihood continuously 2. Reactivating more Services and Facilities 3. Further rehabilitation of Infrastructure Facilities 4. Further development of Human Capacity 5. Paying continuous attention on Vulnerable Groups 6. Strengthening the Good Governance further
8. Past Investments
There had been several interventions with the assistance of donor agencies during the recent past. These investments came in through the Central Government mechanism, Provincial Council mechanism and through combined mechanism of both Central and Provincial. These interventions were mainly meant to resettle people, restore the livelihood and rehabilitate the service deliveries in the Province. The Government mostly supported relief and rehabilitation programmes and the reconstruction activities and development.
The focal areas of Provincial initiatives and efforts were generally aimed at the following.
1. Resettlement of displaced people in the Northern Province. 2. Re- activating and improving provisions of services such as Health facilities and Education Facilities. 3. Supporting livelihood activities of IDPP by addressing their basic needs. 4. Rehabilitating and developing economic infrastructure facilities 5. Improving implementation capacities of implementing agencies, partner organizations and communities.
The following amounts were invested through the Provincial institutions working in the Northern Province.
Past Investment of Capital & Recurrent funds Year 2009 2010 2011 *2012 Capital Allocation 2,600.08 3,057.17 1,949.50 1,888.85 Expenditure 2,255.94 2,845.27 1,754.49 1,003.67 Recurrent Allocation 8,348.66 8,700.00 9,768.84 10,377.64
Rs. Mn Expenditure 7,820.80 8,676.22 9,707.39 9,586.49
Up to November 2012
9. Investment – 2013
The following investments are envisaged in different sectors during 2013. The purposes of the investment are elaborated sub-sectors wise below. Investment for the year 2013 Rs. Mn
Administration Agriculture Animal Production & Health Irrigation Land Education Sports Health Indigenous Medicine Infrastructure Development Building Road Local Government Co-operative Industries Social Service Probation & child care Rural Development
CBG PSDG Others
1,574.79 140.39 110.06 196.25 59.17 5,803.18 33.95 2,535.71 88.65 13.06 64.80 91.10 914.97 106.39 53.53 264.00 50.47 62.82 12,163.29
172.9 1.6 1.3 1.3 0.3 3.1 0.3 1.6 1.3 0.3 1.3 1.3 1.6 1.6 1.3 1.3 1.3 1.3 195.0
372.0 74.0 30.0 30.0 3.0 103.0 14.0 110.0 26.0 40.0 60.0 123.0 4.0 9.0 16.0 16.0 1030.0
UNICEF Fund Allocation
The details of the Thrust Areas of the sectors and the services to be provided under these sectors using the above resources are given in the Service Performance Plan for the year 2013. Thank you!
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