Centre Unveils ₹1.25 Lakh Crore Rural Development Push
Union Minister for Agriculture & Farmers Welfare and Rural Development Shri Shivraj Singh Chouhan chaired a meeting with State Rural Development Ministers to review implementation preparedness for the 'Viksit Bharat GRAMG' initiative, which will come into effect from July 1, 2026. The Central Government has announced a comprehensive financial package totaling ₹1.25 lakh crore for rural employment, workers' security, and village development.
Financial Allocation Details
The allocation includes ₹30,000 crore already provided under MGNREGA and an additional interim allocation of ₹95,692.31 crore released to States and Union Territories. The state-wise interim allocations are: Andhra Pradesh ₹7,707.21 crore, Arunachal Pradesh ₹560.70 crore, Assam ₹1,929.7 crore, Bihar ₹6,715.83 crore, Chhattisgarh ₹3,354.85 crore, Goa ₹3.70 crore, Gujarat ₹1,540.54 crore, Haryana ₹590.19 crore, Himachal Pradesh ₹1,203.28 crore, Jharkhand ₹2,705.64 crore, Karnataka ₹5,709.9 crore, Kerala ₹3,136.44 crore, Madhya Pradesh ₹6,252.03 crore, Maharashtra ₹4,420.32 crore, Manipur ₹581.99 crore, Meghalaya ₹1,155.09 crore, Mizoram ₹611.65 crore, Nagaland ₹287.85 crore, Odisha ₹3,763.80 crore, Punjab ₹1,331.61 crore, Rajasthan ₹7,581.87 crore, Sikkim ₹97.57 crore, Tamil Nadu ₹7,585.49 crore, Telangana ₹3,825.31 crore, Tripura ₹1,041.7 crore, Uttar Pradesh ₹9,721.48 crore, Uttarakhand ₹626.43 crore, and West Bengal ₹8,508.00 crore.
Union Territories received allocations totaling ₹1,291.52 crore, distributed as: Puducherry ₹40.56 crore, Jammu & Kashmir ₹1,151.2 crore, Andaman & Nicobar Islands ₹4.44 crore, Ladakh ₹85.98 crore, Dadra and Nagar Haveli and Daman and Diu ₹9.02 crore, and Lakshadweep ₹0.32 crore. An additional ₹1,850.62 crore has been earmarked for Central administration and social audit.
Implementation Framework and Requirements
Minister Chouhan emphasized that "not a single worker should remain without work even for a day" during the transition period. The funds will reach nearly 2.80 lakh Gram Panchayats across the country, with each Panchayat receiving several lakhs of rupees. Works will be selected through Gram Panchayats and Gram Sabhas, focusing on employment generation and creation of rural assets under the provisions of the Act.
States are required to issue state-level notifications immediately, notify agricultural peak seasons, ensure 100 percent e-KYC completion, and organize capacity-building and awareness programmes at district and block levels. The Minister noted that many states have made remarkable progress in digital processes including DBT, SMS-based information systems, e-KYC, and face authentication.
State Preparedness
Twenty-six States have already made budgetary provisions aligned with the 'Viksit Bharat – Gramin Bharat' objective, while Jharkhand, Karnataka, Telangana and Mizoram were urged to complete the process at the earliest. Mizoram, Puducherry and Andhra Pradesh were appreciated for already issuing notifications.
Future Planning
A National Rural Development Conference will be held at the PUSA Institute in New Delhi on June 28 and 29 for detailed discussions on effective implementation. The initiative aims to transform rural India and provide sustainable employment and better livelihoods to crores of workers under the leadership of Prime Minister Shri Narendra Modi.