Jal Jeevan Mission: Centre’s share of funds may go down, how that will impact states

Two days before the Prime Minister’s announcement, the Union Cabinet had approved the JJM, with an objective of providing Functional Household Tap Connections to every rural household by 2024.

At that time, the ministry had said that of the 17.87 crore rural households in the country, about 14.6 crore (81.67 %) did not have household water tap connections. For this, an overall allocation of Rs 3.60 lakh crore—Rs 2.08 lakh crore Central share and Rs 1.52 lakh crore states’ share—was decided upon.

The fund sharing pattern was fixed at 90:10 for Himalayan and North-Eastern States and 50:50 for other states.

The aim was to provide potable water in adequate quantity, i.e. 55 litre per capita per day (lpcd), of prescribed quality, i.e. BIS Standard of IS: 10500, on a regular basis.

Progress of the JJM

Since the launch of the JJM in 2019, states have approved 6.31 lakh water supply schemes with an estimated cost of Rs 8.07 lakh crore to cover 12.83 crore households in rural areas. If the cost of schemes pending for approval (Rs 32,364 crore) and other components is included, the overall mission outlay would reach Rs 9.10 lakh crore.

While the mission ended in 2024, Finance Minister Nirmala Sitharaman, in her budget speech on February 1, announced its continuation till 2028.

The Jal Shakti Ministry then approached the EFC, seeking approval for an enhanced outlay of Rs 9.10 lakh crore, including a Central share of Rs 4.39 lakh crore. The Jal Shakti Ministry said that the Centre had already released Rs 2.08 lakh crore during 2019-24, therefore, the ministry now requires Rs 2.79 lakh crore. However, the EFC has recommended only Rs 1.51 lakh crore—46 per cent less than the amount demanded.

Is this the first time that the EFC has recommended lower funds than the amount sought?

No. In 2019 too, the EFC had fixed the JJM outlay at Rs 3.6 lakh crore against the Jal Shakti Ministry’s demand of Rs 7.89 lakh crore. Of the total outlay of Rs 3.6 lakh crore, the central share was Rs 2.0865 lakh crore. Out of the approved Central share, an amount of Rs 1.86 lakh crore was utilised till March 2024.

How will the EFC’s recommendations impact states?

It is learnt that the EFC’s move to cut the overall outlay will deprive Assam of projects worth Rs 2,991 crore, Bihar Rs 7,500 crore, Maharashtra Rs 641 crore, and Tamil Nadu Rs 21,232 crore. They will lose central share of Rs 17,378.40 crore. It is learnt that the move will also have implications of about Rs 50,000 crore on three states—Uttar Pradesh, Rajasthan and Madhya Pradesh.

What will happen now?

The EFC’s decision is recommendatory and not mandatory. The Union Cabinet takes the final decision. So the Jal Shakti Ministry now has three options.

First, the Jal Shakti minister can take up this issue with the Finance minister. Second, Jal Shakti Ministry officials may approach the Cabinet Secretariat and request the Cabinet Secretary to resolve differences. Third, the Jal Shakti Ministry can directly go to cabinet, which can decide whether to increase the central share or keep it at the level recommended by the EFC.