Macro management of agriculture scheme was launched on November 2000 to move away from schematic approach to macro management mode by the integrating 27 centrally sponsored schemes to accord greater flexibility to State Governments to develop and pursuer activities on the basis of regional priorities. Central government provides 90 per cent of the outlay to states and 10 per cent is the share of the State. Out of Central government’s assistance of 90 per cent, 80 per cent is grant and 20 per cent is loan. Aims of Macro Management Scheme include: Reflection of local needs/crop/regions specific/priorities, etc.; providing flexibility and autonomy to states; Optimum utilization of scarce financial resources; Maximization of returns; Removal of regional imbalances. Under this scheme, the state of Punjab had Rs 27.50 crore (Rs 25.00 crore GOI + Rs 2.50 crore state share) during 2000-01 for the specific purposes i.e. development of agriculture and horticulture, improving infrastructure for agricultural marketing and for better soil conservation and water management in the state. Since then, the state government had been receiving funds under this scheme on regular basis for the thrust areas. The proposed state action plan included seed plan and better pest/weed management for yield enhancement and cost optimization. The seed plan action was aimed at boosting agriculture production through providing certified seed/adoption of better seed replacement for wheat and paddy, seed multiplication and seed treatment for major crops. To follow the recommendations for seed replacement, wheat and paddy was provided to the farmers on 25 per cent subsidy during the years 2001-02 onwards. The pest/weed management scheme was, therefore, targeted to weed control, rat control, providing plant protection equipments, setting up of Bio-Control Laboratory and strengthening of Pesticides Testing Laboratories. To promote Integrated Pest Management approach, demonstrations-cum training was conducted in those areas where occurrence of diseases and pests were frequent on cotton crop. Present study attempted to highlight the impact of such interventions in the state. The per cent incentive realized by sample households brought out that the major share of incentives was cornered by large farm size category sharing 59.33 per cent of the total incentives/subsidies provided to sample households. The small farm size category shared only 1.14 per cent of the total incentives provided by the state government under macro management scheme of agriculture. During the period, total area under wheat crop increased by 1.44 per cent with the corresponding production increase by 6.21 per cent. Consequent upon the implementation of macro management of agriculture scheme the average yield of rice had increased by 3.71 per cent, 2.76 per cent, 2.54 per cent and 3.82 per cent on small, semi-medium, medium and large holding size groups respectively. In case of wheat, average use of urea has declined in all the farm size categories varying between -1.83 per cent on medium farm size categories to about -19.11 per cent on small farm size category. Similarly, the use of DAP for wheat cultivation had also reduced by 3 per cent to 6 per cent across various farm size categories. The use of zinc had increased by 50 to 100 per cent. Small and semi-medium farmers were not using magnesium before the implementation of nutrient management scheme under macro management of agriculture started using it with an average dose of 0.71 to 0.64 kg per acre after the implementation of scheme. On the whole it was inferred that with the strengthening of soil testing facilities / infrastructure under macro management scheme in the state the farmers started using need based macro as well as micronutrient in their fields. The reduced use of fertilizers (urea and DAP) and increased use of micro nutrients (zinc, iron and magnesium) would certainly cut down the expenditure and enhance productivity levels of rice-wheat production system in the state. It was concluded that under macro management of agriculture schemes, efforts to strengthen integrated cereal development programme and integrated pest and weed management/ integrated nutrient management were the steps in right direction to maintain the soil fertility, to curtail the ever increasing cost of production, increasing productivity and hence profitability at farmer’s field, yet the budget provision for these crucial activities were miniscule, just like a drop in the ocean. Such efforts needed to be implemented on a large scale to tackle the alarming issues such as decelerating crop productivities as well as soil fertility in the state.