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Impact Of Government Expenditure On Agriculture And Performance Of Agricultural Sector In India

Author

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  • Selvaraj, K. N.

Abstract

The agricultural development had to rely heavily on government finance since the inception of first Five Year plan (FYP) period. However, there has been declining share to agriculture from the public finance clue to planned achievements in agriculture, industrialisation and economic reforms. This trend may have deleterious effect on the performance of agricultural sector. An attempt is made in this paper to assess the impact of agricultural government expenditure on agricultural output growth using time-series data over the 1951-52 to 1988-89 period. The adverse effect of expenditure instability on agricultural growth is also analysed. The results indicate that the government expenditure policies are of vital importance for the growth of agricultural sector and any reduction in agricultural government expenditure adversely affects agricultural sector performance. It was also found that instability in agricultural government expenditure is inversely related to the growth of the sector.

Suggested Citation

  • Selvaraj, K. N., 1993. "Impact Of Government Expenditure On Agriculture And Performance Of Agricultural Sector In India," Bangladesh Journal of Agricultural Economics, Bangladesh Agricultural University, vol. 16(2), pages 1-13, December.
    • Handle: RePEc:ags:bdbjaf:202859
    DOI: 10.22004/ag.econ.202859
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    Cited by:

    1. Utpal Kumar De & Dahun S Dkhar, 2018. "Public Expenditure and Agricultural Production in Meghalaya, India- An Application of Bounds Testing Approach to Co-Integration and Error Correction Model," International Journal of Environmental Sciences & Natural Resources, Juniper Publishers Inc., vol. 8(2), pages 71-78, January.
    2. John Rapley, 2001. "Convergence: myths and realities," Progress in Development Studies, , vol. 1(4), pages 295-308, October.
    3. Sumbal Javed & Muhammad Tariq & Saima Urooge, 2017. "The Role of Public Spending and Credit Disbursement in the Agriculture Sector of Pakistan," Global Economics Review, Humanity Only, vol. 2(1), pages 34-41, December.

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