Water is the physical basis of life. Without sufficient water on the planet earth, the existence of biodiversity is highly impossible. “A water budget is a basic tool that can be used to evaluate the occurrence and movement of water through the natural environment”. India entered the water deficit nations league in 2011. We have an annual financial budget with the estimations of income and expenditure. In the same way, the state water budget is to enable and empower the states to ensure that annual water withdrawals are within the limits of utilizable availability. State Water Budgeting empowers the State Government in achieving Water Security, Safety and Sustainability. The primary stakeholder in the water budgeting exercise is the “Farmer”. This exercise helps the farmer become aware of the water availability at the watershed/village level and make an appropriate agricultural plan. The Crop Water Budgeting (CWB) tool has been developed to assist communities in how to utilize surface and groundwater efficiently without causing further depletion of present resources. The most important advance in modern agriculture is the invention of the drip-irrigation system. Drip method of irrigation (DMI) was introduced in India during the mid-1980s primarily to save water. Now Israel is the world’s leader in farming and irrigation practices. India should learn lessons from Israel by adopting its success story. India is facing a severe water crisis and drought with an increasing population at an alarming rate. So there is an urgent need to establish water recycling units, desalination plants to irrigate agricultural lands and to maintain moisture in barren lands by irrigating them with recycled water and followed by massive introduction of micro-irrigation techniques.