Over the years sustainable budget has been a contentious issue in Nigeria economic development. Few have argued that the concept of budget is associated with sustainable development because the coverage of sustainability related concepts is also in the purview of government expenditure. This study examines agricultural public spending in Nigeria and its significance to agricultural growth and development, using Ondo State public spending in agriculture from 1996 to 2010 as a case study. The significance of the study is to explore the correlation of public spending to agricultural growth. Data were analyzed by descriptive analysis and dynamic-general-computable-equilibrium (DGCE). Categorization of the budgetary trends were into 3 scenarios (1996-2000, 2001-2005, and 2006-2010) and allocation to agriculture increased by 13.27% in 2nd and 84.32% in 3rd scenarios. Agriculture share of the budget is 3.02, 1.57 and 1.88% in the 1st, 2nd and 3rd scenarios, respectively. Micro-simulation analysis shows agricultural sector grows at 4.2% annually in the 1st, 2.1% for 2nd and 3.7% at the 3rd scenarios, respectively.

Keywords: Agricultural budget, public spending, expenditure policy, efficiency levels, Ondo State.