Budget 2026: What it signals for water, sanitation, river conservation
The Union Budget 2026-27 emphasises significant investments in water supply, sanitation, river conservation.
With a budget estimate of Rs 2,16,654 crore, the government aims to enhance urban and rural water management through schemes like AMRUT, SBM and Jal Jeevan Mission.
The focus is on improving infrastructure, increasing water access and promoting sustainable practices across India.
This analysis examines the focus of the Union Budget 2026-27, presented by the Union Finance Minister Nirmala Sitharaman on February 1, 2026, with particular attention to water supply, water conservation, river conservation, sanitation, wastewater treatment and the reuse of treated water.
It covers major government and centrally sponsored schemes, including AMRUT (Atal Mission for Rejuvenation and Urban Transformation) and Swachh Bharat Mission (SBM)-Urban, implemented by the Union Ministry of Housing and Urban Affairs (MoHUA); the National Ganga Plan, Jal Jeevan Mission (JJM) / National Rural Drinking Water Mission and SBM-Grameen, implemented by the Union Ministry of Jal Shakti (MoJS); and the Watershed Development Component of the Pradhan Mantri Krishi Sinchai Yojana, along with the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin)-VB-G RAM G Scheme (including the MGNREGA programme component), implemented by the Union Ministry of Rural Development.
Taken together, the actual expenditure for 2024-25 across these schemes stands at Rs 1,24,530 crore. The Budget Estimate (BE) for 2025-26 was Rs 1,81,097 crore, while the Revised Estimate (RE) for 2025-26 was Rs 1,26,687 crore. For 2026-27, the BE has been set at Rs 2,16,654 crore.
This indicates that actual spending in 2024-25 and the RE for 2025-26 are almost identical. While expenditure in the current financial year does not appear to exceed that of the previous year, the government is signalling an intention to significantly scale up spending in the coming financial year.
These centrally sponsored schemes together drive India’s efforts on water supply, water conservation, river rejuvenation and wastewater management, including the reuse of treated water.
Despite their centrality to India’s water and sanitation goals, budget allocations for key schemes show a clear softening in ambition. For AMRUT, the budget estimate for 2026-27 has declined compared to 2025-26. A similar reduction is visible for Swachh Bharat Mission-Urban (SBM-U) and the National Ganga Plan, while allocation for SBM-Grameen has remained unchanged. Overall, the Budget Estimates for 2026-27 broadly align with the Revised Estimates for 2025-26, signalling a limited appetite within the system to absorb significantly higher funding.
This trend is especially true for SBM-Urban, where the allocation for 2026-27 has been cut by 50 per cent compared to the previous year’s allocation. In 2024-25, actual expenditure across AMRUT, SBM-Urban, the National Ganga Plan and SBM-Grameen was Rs 13,593 crore. For 2025-26, the government initially planned to spend Rs 25,592 crore, but subsequently revised this down to Rs 18,187 crore — a reduction of nearly 30 per cent. Actual expenditure figures for 2025-26 are not yet available.
For 2026-27, the government plans to spend Rs 20,792 crore across these four programmes. While this indicates a gradual increase in spending over time, it also suggests a recalibration of expectations.
Urban water and sanitation
In urban areas, two major programmes continue to dominate the landscape: AMRUT 2.0 and SBM-Urban 2.0.
AMRUT 2.0 will retain its focus on universal household water supply coverage in all mission cities, improved access to sewerage and septage management, increased availability of quality green spaces, and improved water management and conservation in cities. The BE for AMRUT in 2026-27 is Rs 8,000 crore, marginally higher than the RE of Rs 7,500 crore for 2025-26. The key performance indicators for AMRUT 2.0 cities include:
80 per cent of urban households provided with tap water connections
60 per cent of households provided with sewer connections or septage management
150 MLD of recycled water utilised
2,000 acres of improved green cover and quality public spaces developed
4,000 acres of water bodies rejuvenated
SBM-Urban 2.0 focuses on both solid waste management and wastewater (used water) management. Under wastewater management, the programme aims to improve used water handling through the construction of 500 MLD of sewage treatment plant (STP) and faecal sludge treatment plant capacity during the financial year. This is supported by a BE of Rs 2,500 crore for 2026-27, covering both solid waste and used water management, compared to an RE of Rs 2,000 crore in 2025-26. The expected outcomes for used water management include:
15 per cent of statutory towns achieving Water+ certification during the year (including new and maintained certifications), and
55 per cent of statutory towns achieving ODF++ certification (including newly certified and maintained status).
River rejuvenation
The National Ganga Plan will continue to operate with its core objective of enhancing water quality to meet prescribed bathing standards by 2027. A key output remains the prevention of direct sewage discharge into the river through treatment infrastructure. The programme aims to add 600 MLD of sewage treatment capacity. The 2026-27 BE of Rs 3,100 crore represents an increase over the RE of Rs 2,687 crore for 2025-26.
Rural drinking water, sanitation
In rural areas, the Jal Jeevan Mission will continue its focus on increasing the number of Har Ghar Jal (HGJ)-reported and HGJ-certified gram panchayats, with the objective of creating sustainable infrastructure to support rural household drinking water supply within premises. The BE for JJM for 2026-27 is Rs 67,670 crore, substantially higher than the RE of Rs 17,000 crore for 2025-26. The mission aims to achieve:
More than 80 per cent of villages in reported and certified HGJ gram panchayats supplying regular water as per schedules issued by the respective gram panchayats
More than 80 per cent of such villages reporting adequate water supply to over 90 per cent of households
More than 90 per cent of these villages undertaking household testing as per protocol
More than 90 per cent of such villages taking remedial action as per protocol
SBM-Grameen, with a BE of Rs 7,192 crore for 2026-27, remains the principal programme for solid and liquid waste management in rural areas. Its overarching objective is to achieve Sampoorna Swachhata and visual cleanliness. The target for 2026-27 is for 15 per cent of villages to be declared Open Defecation Free Plus (ODF Plus) Model villages. The programme will continue to expand coverage of solid waste management, grey water management, plastic waste management units, faecal sludge management, and districts with at least one community-based GOBARdhan project.
Livelihoods & watershed development
The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), or the VB-G RAM G Scheme, has a BE of Rs 30,000 crore for the MGNREGA programme component and Rs 95,692.31 crore for VB-G RAM G in 2026-27. The scheme tracks outcomes such as average person-days of employment per household and the number of water security works undertaken. As a demand-driven programme, specific targets are not pre-determined.
Under the Watershed Development component of the Pradhan Mantri Krishi Sinchai Yojana, the creation or renovation of 57,959 water harvesting structures in 2026-27 has been identified as one of five key indicators. The overall objective of the programme is to improve the efficiency and effectiveness of watershed projects.