Union Budget 2026: Bare necessities index — What it is, and why it matters for budget planning

As the Union Budget 2026 is scheduled to be presented in Parliament on Sunday, 1st February 2026 at 11 am, policymakers are also looking at indices that ground fiscal decisions in real-world needs. One such tool is the Bare Necessities Index (BNI), an innovative measure that assesses access to basic services and informs how budget resources can be allocated to improve quality of life across India.

What is the bare necessities index?

The Bare Necessities Index (BNI) is a composite measure introduced in the Economic Survey of India to track how well households can access essentials such as drinking water, sanitation, housing, electricity, and clean cooking fuel.

It builds on the “basic needs” approach to development, quantifying how these essentials are distributed across states, rural and urban areas, and different household groups.

The index uses data from the National Statistical Office, specifically the 69th (2012) and 76th (2018) rounds and summarises 26 indicators across five dimensions: water, sanitation, housing, micro-environment, and other facilities like kitchen ventilation and bathroom access.

Why BNI matters?

By consolidating multiple aspects of well-being into a single metric, the BNI provides a holistic snapshot of quality of life beyond income or GDP. It highlights improvements as well as gaps in access to basic services.

As per the Economic Survey, most states saw progress between 2012 and 2018, though disparities remain across regions and between rural and urban populations.

Role in budget planning

In the Union Budget, the BNI serves as a reference for policy formulation and resource allocation. Areas with low BNI scores may receive priority funding under schemes such as the Jal Jeevan Mission, Swachh Bharat Mission, and Pradhan Mantri Awaas Yojana, which improve water supply, sanitation, housing, and hygiene.

As India works toward its Sustainable Development Goals by 2030, the BNI offers a data-driven tool to guide investments, monitor progress, and reduce disparities in access to essential services.