MULTAN, June 25 Economists, industrialists and farming community of the southern Punjab have expressed mix reaction over the fiscal budget 2009-2010.

Mango Growers' Association President Syed Zahid Hussain Gardezi said that the budget, drawn in peculiar circumstances, was not agriculture-friendly as horticulture processing industry had not been given incentives.

He said that removal of subsidies on electricity, phosphatic fertilisers and DAP, and higher prices of oil and diesel would aggravate problems for farmers.

He lamented that despite low yield, allocations for agriculture research are low.

He pointed out that the issue of water resources was giving the farming community sleepless nights. The allocation for 70 odd small dams is found to be inappropriate.

He said that Benazir income support and subsidised tractor scheme were a good effort to mechanise agriculture, but subsidised implements should be for small and medium farmers without any discrimination.

He demanded that agriculture policy initiatives be supported through representative of growers associations.

Islamia University Bahawalpur's economics department chairman Dr Karamat Ali said that debt-servicing, defence and non-development expenditures consume the budget.

He found the budget to be agriculture-friendly as government spared the agriculture community from additional tax.

Beside early fixation of procurement price of wheat supported the sector. No tax had been imposed on agriculture inputs, he further said.

He criticised withdrawal of subsidy on power. He also wanted the government to limit the role of middleman in agriculture.

Mian Iqbal Hassan, president, Board of Management Multan Industrial State, said that the budget was mere a puzzle, and would result in inflation, unemployment and poverty.

He said 73.62 per cent of total income of taxes is spent on only loan servicing, defence and security. He hailed the decision to withdraw carbon tax on CNG.

He suggested that the government should spend money sent by overseas Pakistanis that is almost $7 to increase the water reservoirs by constructing new dams.

Major Tariq, a progressive farmer, found the budget to be farmer-friendly. He criticised corruption in sale of fertiliser.

He said that the announcement on Kalabagh dam was important for the farming community.

Khawja Mohammad Shoaib of the Farmers' Vision Forum said that allocations for agriculture sector were much less as compared to its contribution in country's economy.

He said that withdrawal of subsidy on phasphatic fertiliser was a good step as farming community was demanding withdrawal of subsidy because only fertilizer manufacturing sector was being benefited.

He said that agriculture sector does not need any subsidy if the government is not going to impose any tax or duty on agricultural inputs.

He said that the government should have announced 50 per cent relaxation in electricity charges for tube-wells and it should also announce relief on diesel to farmers.