Centre Unveils ₹1.25 Lakh Crore Rural Development Initiative
The Ministry of Rural Development has announced a comprehensive financial package totaling ₹1.25 lakh crore for rural employment and village development under the new 'Viksit Bharat GRAMG' framework. Union Minister Shri Shivraj Singh Chouhan chaired a meeting with State Rural Development Ministers to review implementation preparedness for the landmark transition effective July 1, 2026.
Financial Allocation Breakdown
The central government has already allocated ₹30,000 crore under MGNREGA, with an additional interim allocation of ₹95,692.31 crore released to states and union territories. This brings the total allocation to over ₹1.25 lakh crore. The interim allocation includes ₹92,550.17 crore for states, ₹1,291.52 crore for union territories, and ₹1,850.62 crore earmarked for central administration and social audit.
State-wise Interim Allocations
Substantial allocations have been made to individual states: 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: 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).
Implementation Framework and Requirements
The funds will reach nearly 2.80 lakh Gram Panchayats across the country, with each panchayat receiving several lakhs of rupees. Minister Chouhan emphasized that "not a single worker should remain without work even for a day" during the transition period. States are required to ensure no reduction or disruption in employment generation and wage payments under MGNREGA until July 1.
Works will be selected through Gram Panchayats and Gram Sabhas, with funds utilized for development works identified under the provisions of the Act to ensure both employment generation and rural asset creation. States must issue state-level notifications promptly, notify agricultural peak seasons, ensure 100% e-KYC compliance, and organize capacity-building programs at district and block levels.
Digital Preparedness and State Compliance
Twenty-six states have already made budgetary provisions aligned with the 'Viksit Bharat – Gramin Bharat' objective. Jharkhand, Karnataka, Telangana, and Mizoram have been urged to complete the process at the earliest. Mizoram, Puducherry, and Andhra Pradesh have been appreciated for issuing notifications, while other states were asked to expedite this process.
Many states have shown remarkable progress in digital processes including DBT, SMS-based information systems, e-KYC, and face authentication, which are critical for successful implementation of the new arrangement.
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.