BUDGET
Allocation under MGNREGA only to clear past dues - expenditure secy
This story was originally published at 17:14 IST on 1 February 2026
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NEW DELHI – The government has earmarked INR 300 billion in the Union Budget 2026–27 (Apr-Mar) only to clear pending liabilities under the Mahatma Gandhi National Rural Employment Guarantee Act, V. Vualnam, secretary, Department of Expenditure, Ministry of Finance, said during a post-budget press conference Sunday.
In contrast, the government has allocated INR 956.92 billion for the newly introduced Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), that will replace MGNREGA from the next financial year. The allocation for MGNREGA is limited to the settlement of outstanding dues, as the employment guarantee scheme is being formally replaced by the VB-G RAM G framework, the secretary explained.
The new Act is expected to be notified by the Centre from April 1, following which states will be given a six-month transition period to notify and implement the legislation individually. End
Reported by Priyasmitta Dutta and Krity Ambey
Written by Pallavi Singhal
Edited by Deepshikha Bhardwaj
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