Public expenditure on agricultural inputs and farm support services in India – An overview

Abstract

The objective of this study is to make an in-depth assessment of the public expenditure on agricultural inputs and support services at both state and national level. Panel data on public agricultural expenditures have been compiled from the Finance accounts of different states and Combined Finance and Revenue accounts, Government of India. A comparative regional analysis revealed that the western and southern regions focused majorly on irrigation sector, whereas the eastern region has given more focus towards rural development. Out of total expenditure on agricultural inputs and services, crop husbandry has gained significance with a higher expenditure percentage share over the period. The intensity of public expenditure on agricultural inputs and support services has shown more than three-fold increase within a span of eleven years, which will indirectly help to increase rural incomes and narrow down the rural-urban disparity.The study observed imbalances in inter-state allocation of public expenditure in agriculture, which needs to be considered in the future to achieve the goal of inclusive growth in Indian agriculture.