| Summary: | Public expenditure in the agriculture sector and its role in reducing poverty and enhancing household incomes, especially in rural areas, is widely studied and firmly established (Bathla et al 2020; Fan et al 1999, 2000; Fan et al 2008; Mogues et al 2015). In India, the union government and various state governments are the primary sources of public expenditure. Agriculture is a state subject under the Seventh Schedule of the Constitution of India (GoI 2020). However, considering the vast importance of the agriculture sector in the Indian economy (Wagh and Dongre 2016), the union government is also responsible for its development. In addition to spending directly on the sector, the union government allocates a major share of its budgetary resources to the state governments through various available instruments, including central sector schemes, centrally sponsored schemes, and grants-in-aid.
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