Source: The post “Water budgeting: An innovative approach’’ has been created, based on “Water budgeting: An innovative approach” published in “BusinessLine” on 7 January 2026. Water budgeting: An innovative approach.
UPSC Syllabus: GS Paper-3- Environment
Context: Water budgeting is a scientific and participatory approach to managing water resources by estimating availability, supply, demand, and consumption at multiple levels – State, district, Gram Panchayat (GP), and village. It ensures efficient allocation of water across sectors such as agriculture, domestic use, industry, livestock, and the environment, promoting climate resilience and sustainable development. In India, water budgeting has been implemented under schemes like Atal Bhujal Yojna (2019) and the National Water Mission (2018). Recently, NITI Aayog piloted water budgeting in 18 Aspirational Blocks (2025) using the ‘Varuni App’, integrating spatial and non-spatial data for precise assessment.
Need for Water Budgeting:
- India’s per capita water availability has dropped from 5177 m³ in 1951 to 1545 m³ in 2011, and the number of over-exploited groundwater blocks rose from 839 in 2004 to 1034 in 2014.
- Excessive groundwater extraction, shrinking rivers, pollution, and erratic rainfall due to climate change have aggravated water scarcity.
- Future projections suggest that by 2030, India’s water demand (1.5 trillion m³) may far exceed its current supply (740 billion m³), affecting agriculture, industry, and livelihoods.
- Water budgeting allows identification of water surplus and deficit areas, optimizes resource allocation, and supports planning for infrastructure, irrigation efficiency, and water conservation measures.
Methodology:
- Water sources assessed include rainfall, glaciers, rivers, springs, tanks, wetlands, groundwater, coastal water, and wastewater.
- Demand is calculated for domestic, agricultural, livestock, industrial, tourism, and ecological needs.
- Tools like the Varuni App use advanced data analytics and remote sensing to generate block-level water budgets.
- Blocks are categorized based on geography and climate, including coastal, arid, semi-arid, plateau, Himalayan cold desert, and reservoir-dominated regions.
Challenges:
- Data gaps at local levels make accurate water budgeting difficult.
- Limited technical capacity among local bodies and Gram Panchayats hampers adoption of tools like the Varuni App.
- Stakeholder coordination among farmers, industries, local communities, and policymakers remains a challenge.
- Infrastructure deficiencies, such as insufficient groundwater recharge and surface water storage, restrict effective implementation.
- Integration of water budgeting into Central and State Water Policies is still incomplete, delaying systematic adoption.
Way Forward:
- Expand water budgeting from pilot blocks to village, GP, district, and State levels, with public access to data for transparency.
- Conduct capacity-building programs for local officials and community members to utilize digital tools efficiently.
- Encourage participatory decision-making to align policies with local needs and ensure equitable water distribution.
- Promote efficient use of water by maximizing rainwater harvesting, surface water utilization, and minimizing groundwater dependence.
- Incorporate water budgeting into central and state water policies with a time-bound action plan to ensure nationwide implementation.
Conclusion: Water budgeting is essential for India to meet its future water demands, reduce scarcity, and maintain water quality. Effective implementation through technology, stakeholder engagement, and policy integration can ensure sustainable, equitable, and climate-resilient water management, supporting the country’s broader objectives.
Question: Water budgeting is emerging as a key strategy for sustainable water management in India. Discuss its significance, methodology, challenges, and suggest measures to ensure its effective implementation at all administrative levels.
Source – The BusinessLine
