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

Budget 2026 | Union Finance Minister Nirmala Sitharaman’s presented her ninth consecutive Budget in the Parliament on February 1 2026. The Finance Minister emphasised that the government has consistently chosen reform over rhetoric and addressed global uncertainty.

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.