Published Paper Details:

Public expenditure policy is crucial for promoting inclusive growth, impacting economic growth, reducing poverty and income distribution in both short and long-term terms. Social spending provides a minimum income level and increases access to public services. In the short run, public spending on cash transfers reduces income inequality and poverty. In the long run, these transfers can be growth-enhancing and improve distributional outcomes. Spending on education and healthcare services improves quality of life and social mobility, potentially leading to greater equality in social outcomes. Public expenditure also contributes towards economic growth and social development through multiple channels for example investments in agricultural and industrial infrastructure creates backward and forward links and leads to employment opportunities. This paper is to analysed the impact of public expenditure on agricultural productivity and economic growth of Himachal Pradesh. This study includes the impact of public expenditure on crop husbandry, soil and water conservation, animal husbandry, fisheries, forestry and wild life food storage and warehousing, co-operation and gross domestic product (GDP) as indicator of agricultural productivity. ADF Unit Root Test, Correlation and Regression techniques have been applied. Public expenditure on food storage and warehousing had a positive and significant impact on economic growth. This results in insufficient increases in sectoral production which makes it difficult to predict future values of gross state domestic product and economic growth of Himachal Pradesh due to poor resource allocation.