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.