Trends in Agriculture Expenditure in Madhya Pradesh (India): A Study of Budgets

In last seven years GSDP growth rate of MP is above national average but still at 13th position and state like Bihar is performing much better than MP. In agriculture sector growth rate, MP is performing much above than national level, but still much behind than UP, Haryana and Punjab in food grain production. Although the state has achieved record agriculture production growth in last two years, the yield of how many crops match agricultural developed states level is the real question. In the yields per hectare of food grains and per head food grain production MP is far below than agricultural developed states. Irrigated area in MP is just 33.7 percent while in UP, Haryana and Punjab it is 76, 85 and 98 percent respectively. Productivity of the small holdings is less in the state and growth rate of small and marginal holding is highest in the state. To avoid business as usual, state will require more resources and public expenditure on agriculture research, education and irrigation. So in a state where the agricultural scenario is not in the favor of the farmers and they are in need of government investment it would be better to analyze the investment pattern of the state.