The parliamentary standing committee of the ministry of environment, forest and climate change (MOEFCC), in its recently submitted report to both Houses of Parliament on March 9, has pointed out that the ministry had underutilised funds approved to it, and made a number of recommendations to the ministry in this context.
Downward slide started after 2023-24
The committee noted that the utilisation of funds by the MOEFCC during 2024-25 and 2025-26 is less compared to 2023-24, when it had utilised more than 96 per cent of the allocated funds.
While the MOEFCC utilised 72.35 per cent of allocated funds in 2024-25, it utilised only 67.87 per cent of its Revised Estimate (RE) allocation in 2025-26 of Ra 3481.61 crore, as on January 31, 2026.
The committee noted that the Budget Estimate (BE) allocation of Rs 3759.46 crore in 2026-27 was around a 10 per cent increase over the BE allocation of Rs 3412.82 in the year 2025-26.
The committee recommended that the ministry should make proactive efforts for optimal utilisation of funds.
Funds underused in key sectors
The Committee noted that despite increased budget allocation for Central Sector Schemes from Rs 1060.56 crore in BE 2025-26 to Rs 1451.52 crore in RE 2025-26, the MOEFCC utilised only Rs 888.22 crore (as on 31.01.2026). Less utilisation of funds had been noticed in three out of the four components: ‘Environmental Knowledge and Capacity Building’, ‘National Coastal Management Programme’ and ‘Control of Pollution’.
Pollution increases but funds not spent
The Committee also noted that the major contributor for less utilisation is the ‘Control of Pollution’ Scheme.
It observed the poor financial performance of the ‘Control of Pollution’ Scheme during the last three years. The Committee noted that in 2025-26, the MOEFCC has been able to utilise Rs 814.26 crore (upto 31.01.2026) out of the increased RE allocation of ₹1300 crore. With environmental pollution in the country posing a significant threat to public health and environmental stability, especially in Delhi and surrounding areas, the funds allocated for its control must be optimally utilised.
The committee recommends that the MOEFCC must take remedial measures to ensure that the funds are thoroughly utilised in the next financial year.
Environment education should be a national programme
The committee recommends that environment education be made a national priority and all state governments be made an integral part of it as a national programme.
The MOEFCC may also take up the matter with the ministry of education, so that environment awareness and education are integrated into school syllabus.
Less than 20 per cent of estimated Green India funds utilised till end Jan
A major scheme, National Mission for a Green India, has been impacted adversely. The committee observes that the BE 2025-26 allocation of Rs 220.00 crore for National Mission for a Green India was reduced to Rs 95.70 crore at RE stage, which is nearly 44 percent of the BE allocation.
Even out of the reduced allocation of Rs 95.70 crore, the MOEFCC could utilise only Rs 40.95 crore upto January 31, 2026.
Mixed performance in forest fire, wildlife habitats, man-animal conflict
The committee notes that although the expenditure in forest fire prevention has been satisfactory during 2023-24 and 2024-25, the pace of utilisation has been slower during the current financial year so far.
The committee finds that the performance of MOEFCC under ‘Integrated Development of Wildlife Habitats’ has been extremely good during the last two financial years.
The committee finds the financial performance of the ministry in ‘Project Tiger & Elephant’ satisfactory, but the need to reduce man-animal conflict remains.
Medicinal plant plantation should be mandatory
The committee strongly recommends that the MOEFCC should make it mandatory that, in case of afforestation in degraded areas, at least 25 per cent of the plantation from Compensatory Afforestation Fund Management and Planning Authority (CAMPA) funds should be of medicinal plants, suitable for that particular ecology.
Concern expressed on forest land encroachment
The committee expresses concern on forest land encroachment in the country. Reportedly over 13,000 sq km of forest area is occupied illegally across 25 states.
The committee recommends that the MOEFCC should stress upon all State and Union Territory governments to get the drone survey of lands conducted in forest areas and place these reports in public domain to enable the authorities to verify the status of such lands before any commercial activity or sale or purchase relating to such land is undertaken.
The committee recommends that all eco-sensitive zones of the country should be mapped digitally and all necessary steps should be taken to protect the fragile ecosystems of the country.