The Welsh Government "could be much better in using natural defences" against flooding according to Environment Minister.
John Griffiths made the comment during a Environment and Sustainability Committee meeting scrutinising his work on 27 June 2012.
Mr Griffiths explained that his department "can be more intelligent" using the natural environment to defend against floods, using "means of absorbing water rather than having it run off" land.
The budget summary published by Mr Griffiths department show an increase in spending on flood and coastal risk management from £32 million in the 2007-08 financial year to almost £53 million in 2011-12 financial year.
However, the budget report explains that whilst the department has "previously been in a position where budgets were increasing annually, this is now no longer the case".
Figures show the spending on flood and coastal risk management will drop by approximately £16 million by the 2014-15 financial year.
Mr Griffiths told AM's that he has "made a bid funding for central reserves" and that it is "necessary to continue to build flood defences".
The report ensures that the Environment Minister's department "will continue to explore opportunities to maximise investment on flood and coastal risk management".
Amongst other issues discussed was the vaccination of badgers in the control of bovine TB.
Liberal Democrat AM William Powell asked why there was a "lack of tracking" of the badger which had received the vaccination.
It was stated that there is a system in place where dye is applied on badgers fur.
Chief Veterinary Officer Dr Christine Glossop explained that tagging would be a good thing to do "but technology isn't there to do it without anaesthetising the badger" and the department "might need Home Office licence to do this as well".
Read this in Welsh.