- 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 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/>
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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 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 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.
