It has been well argued that the declining viability in the agriculture sector is creating conditions of distress and crisis. Despite this, the agriculture sector has not received adequate public policy attention from the perspective of food security and farmers’ income in the country. Public policy framework may transform the growth of the sector which may ultimately influence farmers’ income as well as food security of the country. Therefore, it is important to understand the current challenges of public policy interventions for the sector. In this regard, this chapter attempts the following questions: What are the existing trends of public expenditure towards agriculture and allied sectors in India and Punjab in particular? What would be the possible implications of recent patterns of public expenditure on food security and farmers’ income? Lastly, it recommends to promote a progressive fiscal approach for the sector with adequate attention on public goods for long-term and sustained growth for small-holding farming.