Highlights Budget utilisation was low for several schemes, including the Control of Pollution scheme and Mission for Green India. Under Integrated Development of Wildlife Habitats scheme, 72% of the budget has been allocated for Project Tiger and Elephant.  As of March 2023, CPCB had 33% vacancies. India reduced the emission intensity of GDP from 2005 levels by 36% in 2020 and reached renewable capacity of 51% as of December 2025. The number of polluted rivers stretches declined from 351 in 2017–18 to 296 in 2022–23, but in 2024, biochemical oxygen demand exceeded prescribed limits at 146 river monitoring stations.

The Ministry of Environment, Forest and Climate Change (MoEFCC) is responsible for environmental protection, conservation of forests and wildlife, and addressing climate change concerns.  It oversees the implementation of laws such as the Environment (Protection) Act, 1986 (EPA), the Forest (Conservation) Act, 1980, the Wild Life (Protection) Act, 1972, the Air (Prevention and Control of Pollution) Act, 1981 and the Water (Prevention and Control of Pollution) Act, 1974. 

MoEFCC also supports state pollution control boards by providing them technical and financial assistance.  It promotes environmental conservation through schemes related to afforestation, biodiversity protection, and climate action.  It also plays a key role in implementing India’s commitments under international environmental agreements such as the Paris Agreement and the Convention on Biological Diversity.

This note analyses the budget of the Ministry; examines the programmes it is implementing and the issues and challenges prevalent in the sector.

Overview of Finances

In 2026-27, the Ministry of Environment, Forests and Climate Change has been allocated Rs 3,759 crore, a 7% increase over 2025-26 revised estimates.  This includes revenue expenditure of Rs 3,537 crore (94% of total expenditure) and capital expenditure of Rs 233 crore (6% of total). 

Key allocations under the Ministry in 2026-27 include: (i) Rs 1,308 crore to the Control of Pollution Scheme (35%), (ii) Rs 651 crore to Environment, Forestry and Wildlife (17%), and (iii) Rs 637 crore towards Autonomous, Statutory and Regulatory bodies (17%). 

Table 1: 2026-27 budgetary allocation for the Ministry (in Rs crore)

	2023-24 Actual	2025-26 Revised	2026-27 Budget	% Change
Revenue	2,131	3,307	3,537	7%
Capital	89	174	223	22%
Total	2,220	3,482	3,759	7%

Note: % change from 2025-26 Revised to 2026-27 Budget.
Sources: Demand for Grants 2026-27, Ministry of Environment, Forests and Climate Change; PRS.

Table 2: Key expenditure items under the Ministry, 2026-27 (in Rs crore)

	2023-24	2025-26 RE	2026-27 BE	% change
Control of Pollution scheme	191	1,452	1,308	-11%
Environment, Forestry and Wildlife	606	392	651	40%
Autonomous Bodies	439	391	416	6%
Statutory and Regulatory Bodies	194	195	221	11%
Environmental Knowledge and Capacity Building	100	69	103	33%
National Coastal Mission	8	8	10	24%

Note: BE is Budget Estimates; RE is Revised Estimates; % change from 2025-26 RE to 2026-27 BE.
Sources: Demand for Grants 2026-27, Ministry of Environment, Forests and Climate Change; PRS.

Utilisation of funds

Between 2017-18 to 2022-23, the Ministry did not fully utilise its budget.  In 2024-25, the Ministry only utilised 67% of the allocated budget.  This may be on account of 2% utilisation of budget under the Control of Pollution scheme.  In 2024-25, the scheme’s budget was estimated at Rs 859 crore, and the actual expenditure was Rs 16 crore. 

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