This study explores the link between public spending and economic growth, focusing on Nigeria's agricultural sector during the fourth republic (2000–2014). Economic growth is essential at all levels of governance, and public expenditure plays a crucial role in development. The study analyzes how capital, recurrent, and total expenditures in agriculture impact sectoral GDP growth, using the Keynesian growth model and Public Expenditure Management as theoretical frameworks. Data analysis employed methods such as VAR Granger causality, trend analysis, regression, and Unit Root Test. Results reveal that while recurrent expenditure positively impacts GDP, its effect is insignificant. In contrast, capital expenditure is both positive and significant. Together, recurrent and capital expenditures influence economic growth, though their individual effects vary. Additionally, GDP growth influences both types of expenditure. The study concludes that public spending has not been effectively directed toward productivity, falling short of the FAO's recommendation of 25% capital expenditure. It highlights the need for fiscal monitoring to ensure efficient use of allocated funds and improve agricultural development.

Keywords: Agricultural Sector, Economic Growth, Keynesian growth model, Political Economy, Public Expenditure Management, and Public Finance