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Links between Public Expenditure and the Performance of Agriculture in India

Author

Listed:
  • Debasis Panda
  • Ankita Sahu

Abstract

It is evident that the government spending on the agriculture sector has been stagnant in the last few years and so also the sector's contribution to total GDP. Thus, an attempt is made in this paper to establish a link between public expenditure on agriculture and agricultural output. It is also believed that government spending on agriculture is not the only factor which contributes to the AGDP, factors like special area program, irrigation and flood control, village & small industries and rural development contributes too. All mentioned factors comprised and took it as rural development and applied regression analysis for 20 years of data taken from State Finances published by the Reserve Bank of India. Factors like spending on rural development and special area program directly affects the agricultural output which reflects reducing regional disparity. The average ratio of public expenditure on the sector to AGDP has been meager as it stood at 4.85% but the sector has the potential to improve its output if the policymakers focus on reallocation of available resources among sub-heads discussed above.

Suggested Citation

  • Debasis Panda & Ankita Sahu, 2023. "Links between Public Expenditure and the Performance of Agriculture in India," Journal of Studies in Dynamics and Change (JSDC), ISSN: 2348-7038, Voices of Inclusive Change and Expressions- (VOICE) Trust, Dehradun, Uttarakhand, vol. 10(2), pages 1-10, April-Jun.
    • Handle: RePEc:sdc:journl:v:10:y:2023:i:2:p:1-10
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    References listed on IDEAS

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    1. Harish Mani & G. Bhalachandran & V. N. Pandit, 2011. "Public Investment In Agricultural And Gdp Growth-- Another Look At The Inter Sectoral Linkages And Policy Implications," Working papers 201, Centre for Development Economics, Delhi School of Economics.
    2. Bhagabat Malik & Siba Sankar Mohanty, 2023. "Fluctuations in Agricultural Production: A Comparative Study across Selected Countries," Journal of Studies in Dynamics and Change (JSDC), ISSN: 2348-7038, Voices of Inclusive Change and Expressions- (VOICE) Trust, Dehradun, Uttarakhand, vol. 10(1), pages 9-26, January-M.
    3. V N Pandit & Harish Mani & G Balachandran, 2011. "Public Investment in Agricultural and GDP Growth: Another Look at the Inter Sectoral Linkages and Policy Implications," Working Papers id:4385, eSocialSciences.
    4. 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.
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