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Abstract

Increasing agricultural productivity and sustainable food production are crucial to help alleviate hunger and requires action from governments for creating supportive rural infrastructure by enhancing public spending that is likely to invigorate private agricultural investments. The growing dependence on wage incomes poses questions on the viability of farming. The inter-linkages and complementarity between public investments, private capital formation and agricultural growth are well known. The paper examines temporal and spatial aspects of private and public agricultural and irrigation expenditure. By adopting the generalized method of moments (GMM) instrumental variable approach the paper models agriculture income as a function of spending on agriculture, irrigation and other variables for the period 2004-05 to 2018-19.

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