Ind-Ra suggested that the way forward should be “adopting the climate-responsive budgeting or climate tagging of the state government budget to build a climate-resilient economy”.

Climate-tagged budgeting

Spending under budgetary heads such as “soil and water conservation” and “forestry and wildlife” directly addresses the ‘adaptive response’ part of climate change. These are some categories under which a few states have been planning their expenses in recent years.

It indicates that they are responding to the threat, although not necessarily enough, Ind-Ra said.

For instance, the overall expenditure under the budgetary head of “forestry and wildlife” shows a rising trend from the financial year that ended on March 31, 2001, through the financial year 2015. However, it showed a downward trend over the next four years.

A similar pattern was seen in some states’ individual spending capacity.

Only Assam and Maharashtra have shown a consistent increase in this period, Ind-Ra noted.

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