JJM Funding Slashed

Funding Shortfall: The Jal Shakti Ministry requested Rs 2.79 lakh crore to complete the Jal Jeevan Mission (JJM), but the Expenditure Finance Committee (EFC) approved only Rs 1.51 lakh crore.
Burden on States: This shortfall of over Rs 1.25 lakh crore could shift the financial burden to states, especially Uttar Pradesh, Rajasthan, and Madhya Pradesh.
Mission Extension: The JJM, launched in 2019 to provide tap water to all rural households by December 2024, is now proposed to be extended till December 2028 to achieve universal coverage as only 75% of target was achieved till dec 2024.
Cost Escalation Concerns: The EFC cited concerns over cost escalation, potential overestimation by states, and the need for fiscal
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prudence as reasons for the reduced funding.
Revised Outlay: The overall mission outlay has been reduced from Rs 9.10 lakh crore to Rs 8.68 lakh crore (2019-2028).
Increased Input Prices: The Jal Shakti Ministry attributed the increased costs to rising input prices, COVID-19, and the Ukraine war.
Justification Sought: The Department of Economic Affairs (DEA) sought justification for the increased cost of providing tap water to the
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remaining households and questioned the time and cost overruns.
State Liabilities: The Jal Shakti Ministry highlighted that states have incurred additional liabilities and proposed a one-time settlement to address these.