The Andhra Pradesh government is set to present a water budget along with the regular budget for the year 2026-27. A water budget systematically accounts for all water resources (surface water, groundwater, rainfall, consumption sectors, etc.) entering, leaving, and stored within a region. By balancing water income and expenditure, it helps in efficiently managing available water resources for agricultural, domestic, and industrial purposes, and in preventing water scarcity. It improves groundwater resources for sustainable development and also assists in managing water wastage, droughts, and floods. However, there are some challenges. Preparing a water budget requires accurate data, which is often difficult to collect. Implementing it can be time-consuming and expensive. Water availability can vary due to climate variability, and sometimes errors in implementation can make the budgets unreliable.
Lack of public awareness may also limit its effectiveness. Australia is generally considered the first country to introduce water budgeting in a systematic and scientific manner to manage water scarcity, particularly at the river basin level. Today, more than 100 countries follow water budgeting management planning methods. India, the USA, China, Israel, South Africa, and many European countries are widely using water budgeting as a tool to manage surface and groundwater resources. In India, Kerala became the first state to introduce a “water budget” in April 2023. This is a pioneering initiative to manage water scarcity by estimating availability and usage, starting with rural panchayats, taking into account factors such as domestic, agricultural, and industrial needs for equitable distribution.
However, Maharashtra is recognized as the first state to introduce water budgeting at the village and watershed levels through programs like Pani Panchayat and Jalyukt Shivar Abhiyan. Following its success, more than 10 states have adopted water budgeting in various forms. States like Andhra Pradesh, Telangana, Karnataka, Gujarat, Tamil Nadu, Rajasthan, Madhya Pradesh, Uttar Pradesh, and Odisha are following water budgeting for the management of surface and groundwater resources. The 2025 NITI Aayog water budget pilot report found severe block-level deficits in India – for example, Namchi (Sikkim) has a 94% deficit, Gangiri (UP) 60%, and Baldeogarh (MP) 53%. In some areas like Kothri and Abu Road (Rajasthan), groundwater is already being extracted at more than 100% of the recharge rate. Groundwater extraction in India is approximately 59%, which is very high. 11% of the regions are being over-exploited. India’s total annual usable water resources are estimated at around 1,126 billion cubic meters (BCM), with agriculture consuming the lion’s share (85-90%), primarily for irrigation. Therefore, a water budget is essential for balanced utilization.
Andhra Pradesh Water Budget
The Andhra Pradesh government is set to prepare a water budget for the first time for water management. The Water Resources Department has prepared this budget for the 2026-27 water year. According to this budget, it is estimated that the state will have 1,565 TMC of water available for the 2026-27 water year (June 1 to May 31), while the state’s consumption across various sectors for the year is projected at 1,490 TMC. This is expected to result in a surplus of 75 TMC of water. Through this water budget, the government aims to efficiently manage the utilization of water resources in the state.
Andhra Pradesh’s per capita annual freshwater availability is approximately 700,000 liters (700 m³) per person per year, which is lower than the national average, indicating higher local water stress compared to India as a whole. Andhra Pradesh is focusing on data-driven allocation of water for irrigation, drinking water, and industries, with the 2025-26 budget allocations (approximately ₹18,000 crores) for irrigation (Polavaram, Veligonda, etc.) and rural water supply (Jal Jeevan Mission) aimed at bridging demand-supply gaps and ensuring sustainable management, especially given erratic rainfall patterns, and plans to complete major projects like Veligonda by 2027.
The state is utilizing tools like the Jalagam app for efficient planning and involving farmers in decision-making for water-intensive crops. A major reason for this is the allocation of funds for the Jal Jeevan Mission (Har Ghar Jal) to ensure tap water supply in rural areas and to address the funding shortfalls of previous years. It has also projected a total water demand of 1,490 TMC for irrigation, drinking water, and industries for the 2026-27 Kharif season. The state plans to officially launch a comprehensive water budgeting process from the 2026-27 financial year. It is shifting towards integrated water resource management using financial allocations and technology to manage water scarcity, complete critical infrastructure, and ensure water security for agriculture, industries, and citizens.
Need for Effective Implementation
For effective water budgeting in Andhra Pradesh, measures such as data-driven planning, including tools like NITI Aayog’s Jalagam app to calculate inflows/outflows, identify consumption hotspots, and plan for efficient allocation, are necessary. Community participation, such as through Gram Sabhas, is another requirement. As seen in the Odisha model, involving Water Management Committees (WMCs), local communities need to be made stakeholders in preparing water budgets and action plans for drinking water, irrigation, and livestock needs. Apex institutions should be strengthened to formulate policies, guide water user departments, and ensure inter-departmental coordination.
Along with water conservation and demand management, the water-tree program aims to rejuvenate groundwater, prevent depletion, address tree conservation, and set guidelines for water conservation in the domestic, irrigation, and industrial sectors. The Andhra Pradesh Water, Land and Trees Act (2002) strengthen the enforcement of existing legislation for the protection and use of water resources. By implementing these measures, Andhra Pradesh can move towards a comprehensive, data-driven approach to balance water demand with available resources, ensuring long-term water security for agriculture, drinking water, and industries.
