The environment has long been overlooked in our annual budgets. Finance Ministers treat it as an endless resource, rather than a vital part of our lives that needs care and sustainable management. Back in July 2014, I wrote about this issue in my blog, Budget 2014: Shortchanging the Environment. Fast forward to 2026, and the problem is still here, worsened by climate change.
Today, we need to think about how to fund actions to combat climate change, especially for those who are suffering the most—poor farmers, landless workers, fishermen, and nomadic tribes. Sadly, the current budget doesn’t address these needs, just like its predecessors.
The recent Economic Survey released before the budget shows the government’s focus on growth and neoliberalism, often at the environment’s expense. The Chief Economic Advisor boldly claims that a 3°C rise in temperature would be manageable. This viewpoint contradicts scientific consensus. Sustainable growth must be a priority, not just economic expansion.
India seems to be suffering from a case of “Compulsive Infrastructure Disorder.” While infrastructure development is essential, it shouldn’t come at the environment’s expense. The World Bank and IMF estimate that the environmental cost of rapid infrastructure growth could reach 3.5% to 5% of our GDP, which amounts to around $200 billion.
The 2026-27 budget highlights several ambitious projects, like a mineral corridor in southern India and new high-speed rail options. However, it fails to address the environmental impact of these initiatives. Do we really need more corridors when expressways are already being built? These corridors will lead to land acquisition and displacement, adding to the millions of project refugees since Independence.
Additionally, projects like these threaten our forests and coastlines. While the boost to maritime fisheries is positive, there are no protections for traditional fishermen against mechanized trawlers or measures to combat overfishing. The huge energy and water demands of new data centers raise questions about resource availability in a water-stressed country.
The environmental toll from these initiatives is staggering. Regulations that could help mitigate this damage, such as the Forest Conservation Act and the Environmental Protection Act, have weakened over the years. This means little oversight for big projects, leaving the environment vulnerable and further exacerbating our ecological crisis.
Experts agree that sustainable practices are key. In a recent survey, 78% of people in India expressed concern about climate change affecting their lives within the next decade. As we push for growth, we must remember that a healthy environment supports long-term economic and social wellbeing. Balancing development with ecological responsibility is not just wise; it’s essential for our future.
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Union Budget 2026-27,Nirmala Sitharaman,Finance Minister,Climate Change
