The paper examines the trends and rate of growth of public expenditure on rural water supply sector in MP (Madhya Pradesh), covering the period from 2001-02 to 2017-18. Finding indicates that quantum of expenditure on rural water supply has increased significantly since 2001-02, but still the actual amount of money spend on rural water supply sector is less than the required amount. The paper explores the trends of public expenditure on rural water supply, like, trends on revenue and capital expenditure, planned and non planned expenditure. The paper also throws light on trends in budget estimates and actual. Analysis shows that growth rate of rural water supply expenditure is less than total state expenditure, social sector expenditure, total water supply expenditure and sanitation expenditure means expenditure in all sectors growing much faster than rural water supply sector. In comparison with total state expenditure the share of capital expenditure is much higher in rural water supply but it is coming down, the concerning factor is that the growth rate of revenue expenditure in rural water supply expenditure is higher than total water supply expenditure. Share of plan expenditure of rural water supply is higher than state expenditure but the growth rate of plan state expenditure is higher than rural water supply expenditure. The under spending was the steady problem in the study period, the analysis shows that variance of actual expenditure to the budgeted amount in total state expenditure is small, but when we go deep into the rural water supply expenditure under spending is increasing.
