Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages

The present study analyzes temporal and spatial trends in public expenditure on agriculture and irrigation in India. It links sub-period growth performance with expenditure based on structural breaks. The analysis pertains to the period between 1992/1993 and 2019/2020. This is a period that has witn...

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Main Authors: Akber, Nusrat, Kumar, Anjani, Bathla, Seema
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2023
Subjects:
Online Access:https://hdl.handle.net/10568/140334
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author Akber, Nusrat
Kumar, Anjani
Bathla, Seema
author_browse Akber, Nusrat
Bathla, Seema
Kumar, Anjani
author_facet Akber, Nusrat
Kumar, Anjani
Bathla, Seema
author_sort Akber, Nusrat
collection Repository of Agricultural Research Outputs (CGSpace)
description The present study analyzes temporal and spatial trends in public expenditure on agriculture and irrigation in India. It links sub-period growth performance with expenditure based on structural breaks. The analysis pertains to the period between 1992/1993 and 2019/2020. This is a period that has witnessed a stagnation, and even a decrease in public expenditure in the agricultural sector and a resulting deceleration in productivity growth, which was then followed by a revival in both expenditure and output. Significantly expenditure on subsidies of key inputs, viz. fertilizer, irrigation, and power, however, has not incentivized farmers to increase output and productivity to achieve a higher rate of growth. Empirical findings based on the first-difference regression analysis confirm that agricultural growth is determined by public expenditure on agriculture and irrigation; across the states, however, input subsidies alone are shown to be less, or not at all, efficient. Funds to agriculture and irrigation should be increased in proportion to their contribution to the state domestic product, and input subsidies should be rationalized by weighing their positive welfare effects against their cost to the exchequer.
format Artículo preliminar
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spelling CGSpace1403342025-12-02T21:03:24Z Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages Akber, Nusrat Kumar, Anjani Bathla, Seema inputs agriculture subsidies public expenditure The present study analyzes temporal and spatial trends in public expenditure on agriculture and irrigation in India. It links sub-period growth performance with expenditure based on structural breaks. The analysis pertains to the period between 1992/1993 and 2019/2020. This is a period that has witnessed a stagnation, and even a decrease in public expenditure in the agricultural sector and a resulting deceleration in productivity growth, which was then followed by a revival in both expenditure and output. Significantly expenditure on subsidies of key inputs, viz. fertilizer, irrigation, and power, however, has not incentivized farmers to increase output and productivity to achieve a higher rate of growth. Empirical findings based on the first-difference regression analysis confirm that agricultural growth is determined by public expenditure on agriculture and irrigation; across the states, however, input subsidies alone are shown to be less, or not at all, efficient. Funds to agriculture and irrigation should be increased in proportion to their contribution to the state domestic product, and input subsidies should be rationalized by weighing their positive welfare effects against their cost to the exchequer. 2023-12-12 2024-03-14T12:09:21Z 2024-03-14T12:09:21Z Working Paper https://hdl.handle.net/10568/140334 en https://hdl.handle.net/10568/150042 https://hdl.handle.net/10568/151012 https://hdl.handle.net/10568/151457 https://hdl.handle.net/10568/147627 https://doi.org/10.2499/p15738coll2.133848 Open Access application/pdf International Food Policy Research Institute Akber, Nusrat; Kumar, Anjani; and Bathla, Seema. 2023. Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages. IFPRI Discussion Paper 2214. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.137019.
spellingShingle inputs
agriculture
subsidies
public expenditure
Akber, Nusrat
Kumar, Anjani
Bathla, Seema
Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages
title Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages
title_full Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages
title_fullStr Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages
title_full_unstemmed Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages
title_short Public expenditure and growth dynamics in Indian agriculture: Trends, structural breaks, and linkages
title_sort public expenditure and growth dynamics in indian agriculture trends structural breaks and linkages
topic inputs
agriculture
subsidies
public expenditure
url https://hdl.handle.net/10568/140334
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