The contemporary situation of Punjab’s rural economy has been a subject of serious concern. One of the important reasons for the disappointing outcomes in the state is the proliferation of the expenditure heads of public outlays by successive governments at different levels. Further, the rural sector has consistently lost its importance in the state’s public outlays, with a progressive diversion of public spending on the rural sector towards local-level administration, bypassing key sectors of rural development such as human resources development. This aspect has been a major driver of the unending rural crisis in the state. The evolving levels and patterns of the public expenditure on the rural sector over time are examined.
