An autonomous research institute under the Ministry of Finance


Public Expenditure on Water - Volume I (Report)

Publication date

Jan, 1998


Report Submitted to the UNDP.


Om Prakash Mathur


The water sector comprising irrigation, rural water supply, and urban water supply is a major component of expenditure in India. In 1994-95, it accounted for approximately 25-­28 percent of the total capital expenditure of the states and between 1.5-8.7 percent of their revenue expenditures. What have been the trends in public expenditure on water? What are the recoveries on water account? Is the uncovered portion of expenditure rising or declining? What is the contribution of the water sector to the fiscal deficit of the states? Addressing these questions and based on the finance accounts of states, the study has highlighted that the uncovered portion of expenditure has risen in most states, which is not in the interest of the sound finance of states. The study has advocated the need to formulate appropriate pricing policies for the water sector.

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