Performance of Developmental and Non-Developmental Expenditure on Agriculture Sector in Karnataka: A Trend Analysis

Abstract

The study examines development and non-development expenditure on agriculture in Karnataka and its impact on agricultural development, employment and income generation, irrigation, agricultural production, farmers’ standard of living, and allied activities. Agriculture and allied sectors are vital to Karnataka’s economy and provide livelihoods to a significant share of the state’s population. Public expenditure is essential for strengthening agricultural infrastructure and promoting irrigation, crop development, allied activities, research, and farmer welfare. Efficient allocation of expenditure helps improve agricultural productivity, employment, income, rural livelihoods, and sustainable agricultural development. The present study analyses the performance and trends of developmental and non-developmental expenditure in Karnataka, with special reference to agriculture and allied services, during the period 2015–16 to 2025–26.

The study examines the trends and growth patterns of Agriculture and Allied Activities expenditure in Karnataka during 2019–20 to 2025–26. The analysis employs Annual Growth Rate (AGR) and an exponential growth model to assess changes in expenditure over the study period. The findings reveal a fluctuating expenditure pattern, with expenditure declining during 2020–21 and 2021–22, followed by a recovery from 2022–23 onwards. The exponential growth model indicates a positive annual growth rate of 5.05%, with an R² value of 0.4395, suggesting that approximately 43.95% of the variation in expenditure is explained by the time trend. However, the estimated growth coefficient is not statistically significant at the 5% level (p = 0.1046). Therefore, the hypothesis of a significant increase in Agriculture and Allied Activities expenditure is not supported. The study concludes that although expenditure demonstrates an overall positive growth pattern, the increase is statistically insignificant during the study period.