More Stories

Informist, Tuesday, Jun. 9, 2026

 

MUMBAI – Centre has granted an interim allocation of INR 956.92 billion under the Mahatma Gandhi National Rural Employment Guarantee Act for states and Union territories across the country for rural development. This is over and above the already allocated INR 300 billion for the scheme in the Union Budget for 2026-27 (Apr-Mar). With this, the total amount for it adds up to over INR 1.25 trillion, according to a release. 

 

However, it is not clear whether the interim allocation is for FY27 only. The INR 300 billion allocated in the Budget for FY27 is much lower than historically what has been allocated for the scheme.

 

The government has repeatedly said that the scheme is susceptible to fiscal leakage and hence a conservative allocation will help avoid it. It is also a demand-driven scheme, allowing the government to make additional allocations as and when required. 

 

"The Central Government is not only providing funds but also ensuring timely wage payments, protection of workers' rights, and uninterrupted execution of development works," Union Minister Shivraj Singh Chouhan said in a meeting with state representatives. He urged states to pre-approve a sufficient number of projects so that work can commence swiftly from Jul. 1.

 

According to the minister, the funds will reach nearly 280,000 gram panchayats, providing each with substantial financial resources to undertake development works and generate employment in rural areas. Chouhan said the allocation should be utilised for approved development projects in accordance with the provisions of the Act, ensuring both employment generation and the creation of durable rural assets.

 

Budgetary provisions to support the vision of 'Developed India–Rural India' have been made by 26 states, according to the release. Among the states, Uttar Pradesh received the highest interim allocation, followed by West Bengal, Tamil Nadu, Andhra Pradesh and Rajasthan. The total allocation for states stands at INR 925.50 billion, it added.

 

Union Territories have been allocated INR 12.9 billion, with Jammu and Kashmir receiving the largest share among them. Chouhan described the initiative as more than just an employment scheme, calling it an important instrument for creating developed villages and achieving the broader goal of a developed India.  End

 

Reported by Taniva Singha Roy

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.