Water Resource Fund Utilisation in India 2025

April 28, 2025

The Jal Shakti Ministry has reported increase in the utilisation of funds for water resource schemes in the fiscal year 2024-2025. By the end of March 2025, nearly all central allocations were spent. This reflects improved efficiency in fund management and coordination with state governments.

Fund Allocation

The central government allocated Rs 13,431.48 crore for Centrally Sponsored Schemes (CSS). By March 2025, Rs 13,216.34 crore was spent, achieving a utilisation rate of 98.39%. Central Sector schemes had a lower utilisation rate of 81.79% with Rs 5,376.73 crore spent from an allocation of Rs 6,573.73 crore.

Comparison with Previous Fiscal Year

In the previous fiscal year, only 49.45% of CSS funds were utilised. The total cumulative expenditure for CSS reached Rs 15,804.73 crore in FY 2024-2025, a substantial increase from Rs 10,059.15 crore in FY 2023-2024. This indicates a ramp-up in project implementation.

Factors Contributing to Increased Utilisation

Officials attribute the rise in fund usage to streamlined release mechanisms and enhanced coordination with states. Funds released to states increased from Rs 2,902.73 crore in FY 2023-2024 to Rs 4,756.48 crore in FY 2024-2025. This indicates improved collaboration between the central and state governments.

Details of Fund Balances

The balances in State Nodal Agency (SNA) accounts decreased . For CSS, the balance fell from Rs 2,404.98 crore to Rs 1,347.38 crore. Similarly, Central Sector schemes saw a drop in balances from Rs 1,293.50 crore to Rs 608.63 crore. This suggests quicker deployment of funds for projects.

Challenges and Data Discrepancies

Despite the positive trends, minor discrepancies in data may persist. Delays in sharing information from banks and state treasuries could affect reported figures. Officials noted a negative expenditure of Rs 849.06 crore for certain months in FY 2023-2024, likely due to reconciliations.

Future Prospects

The increase in fund availability for CSS reached Rs 19,984.59 crore in FY 2024-2025, up from Rs 11,182.09 crore the previous year. This indicates a strong commitment to water resource management and project implementation. The overall trend suggests a focus on effective deployment and utilisation of funds for river development and Ganga rejuvenation.

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