Changing Pattern of Economic Activities in Agricultural Sector and Role of Government Expenditure in India

This paper is a modest attempt to understand the impacts of changes of government expenditure on the economic activities in agricultural sub-sectors across the states over the period 1993-94 to 2011-12. The agricultural sector has been divided into four sub-sectors, viz. crop, livestock, fisheries and forestry. Economic activities have been considered in terms of value of output and employment in these four subsectors. Two types of employment-Usual Principal Status and Usual Subsidiary Status employment have been considered. The share of government expenditure on fisheries sub-sector is positively related with value of output and Usual Principal Status employment. Change in government on research and education in crop sub-sector has a positive impact on value of output of crop sub-sector. Government expenditure has a positive impact on diversification of economic activities within the agricultural sub-sectors.