Water Budgeting: An Innovative Approach

In November 2025, NITI Aayog released a report on water budgeting in 18 Aspirational Blocks, stressing context-specific strategies for regions facing competing water demands, ecological stress, and infrastructure gaps.

• The initiative reflects India’s broader push towards climate resilience and sustainable water management under the vision of Viksit Bharat 2047.

About Water Budgeting

• Definition: It is a scientific data-driven approach to sustainable water management that systematically accounts for a region’s water inflows (rainfall, glacier, groundwater recharge) and outflows (agriculture, industry, domestic use)  to identify demand–supply gaps and inform local planning.
• Importance of Water Budgeting: It helps in the judicious utilisation of water resources.
  • It supports better future planning and sustainable water management.
• Global Adoption: Water budgeting is a standard water management practice in countries such as Austria, Brazil, Canada, Italy, the United States, and the UAE.
• Scientific Methodologies: Globally, water budgets are prepared using remote sensing data, evapotranspiration measurements, and analysis of surface storage and soil moisture, enabling accurate demand–supply assessment and evidence-based planning.

The Crisis Of Declining Water Availability in India

• Scale of Use: India is the world’s largest user of groundwater.
• Decline in Per Capita Water Availability: Per capita water availability in India is declining sharply over time.
  • 5177 cubic metres in 1951
  • 1545 cubic metres in 2011
• Water Stress Indicator: Per-capita water availability below 1,700 cubic metres per year indicates water stress.
  • India falls in the water-stressed category, with per capita availability below this threshold.
• Over-exploited Blocks: In 2004, 839 blocks in India were classified as over-exploited; by 2014, this number had risen to 1,034 blocks, indicating worsening groundwater stress.
  • Overexploitation of blocks means areas where groundwater is being withdrawn faster than it can naturally replenish itself.
• Reasons for the Decline: 
  • Lack of Demand Management: There is inadequate control over rising water demand.
  • Pollution and Contamination: Water resources are increasingly affected by pollution and contamination.
  • Floods and Water Quality Challenges: Recurrence of floods leads to water quality problems and reduces usable freshwater.
• Future Projections:
• • World Bank (2012): Nearly 60% of India’s aquifers could become critical within two decades, signalling severe groundwater stress.
  • National Commission for Integrated Water Resources Development Projection: India’s annual water requirement is projected to reach about 1,180 billion cubic metres (BCM) by 2050.
  • Water Resources Group (2030 Estimate): By 2030, water demand may rise to 1.5 trillion cubic metres while supply may remain around 740 billion cubic metres, indicating a sharp demand–supply gap.

Previous Attempts At Water Budgeting In India

• Atal Bhujal Yojana (Dec 2019): The Yojana is implemented in 7 states, and the community/Gram Panchayat prepares the budget to understand if they are in surplus or deficit.
• Kerala Model (2023): The Kerala Model (2023), led by the Centre for Water Resources Development and Management (CWRDM), estimates water supply from rainfall and runoff, and water demand from population and tourism pressures.
• National Water Mission (2018): Promoted water budgeting as a data-driven tool for sustainable management.

Niti Aayog (2025) and Varuni App

• Institutional Initiative (2025): In 2025, NITI Aayog introduced water budgeting in 18 Aspirational Blocks using the Varuni App.
• Varuni App: Varuni integrates publicly available datasets to determine whether a Block is experiencing a water surplus or deficit.
  • Demand Assessment: The app calculates water demand by factoring in domestic and livestock needs, agricultural seasons, and industrial requirements.
  • Supply Assessment: It estimates water supply through surface runoff, groundwater availability, and inflows from outside the local geography.
• Geography-Based Planning: Blocks are classified by physiographic regions such as coastal areas, the Gangetic plains, Himalayan cold deserts, and arid zones, enabling context-specific strategies.
• Case Studies:
  • Namchi Block: Faces a 94% water deficit.
  • Vijeypur Block: Despite a 42% deficit, it has high “run-off,” suggesting that water harvesting could solve its shortage.
  • Kotri & Abu Road: Groundwater exploitation exceeded 100%.

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Way Forward

• Deepening Decentralisation: There is a need to scale up the Varuni App from block level to village, Gram Panchayat, district, and state levels, beginning with pilots, and ensure public disclosure of all water budgeting data to enhance transparency and accountability.
• Strengthening Data and Local Capacity: Given the complexity of water data collection, systematic training and capacity-building for local officials to use the Varuni App are essential for accurate planning and implementation.
• Stakeholder Engagement (Jan Bhagidari): The farmers, industries, indigenous communities, and local bodies should be actively involved in water planning, and participatory decision-making should be promoted to ensure ownership and compliance.
• Policy Integration and Time-Bound Implementation: The water budgeting should be mainstreamed into Central and State water policies, and clear, time-bound action plans should be adopted to ensure effective and accountable execution.

Conclusion

Water is not merely a natural resource but the very engine of the economy. As water scarcity spreads across regions, water budgeting enables targeted, data-driven action to secure long-term water sustainability.

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