Budget Allocation for Rural Development Initiatives
The VB-G RAM G scheme, set to replace MGNREGA, acquired the largest share in the rural development budget, accounting for approximately 40% of the total allocation for the Department of Rural Development.
Allocation Details
- VB-G RAM G: Allocated Rs 95,692 crore, representing 40% of the budget.
- PMAY-G (Pradhan Mantri Awas Yojana-Gramin): Accounts for 23% of the department's budget.
- MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme): Represents 12% of the budget.
- NRLM (National Rural Livelihood Mission): Receives 8% of the allocation.
- PMGSY (Pradhan Mantri Gram Sadak Yojana): Also has an 8% share.
- NSAP (National Social Assistance Programme): Allocated 4% of the budget.
Overall Budget and Departmental Allocations
- The Ministry of Rural Development received Rs 1,97,023 crore, marking a 4% increase from the previous year's revised estimates.
- The Department of Rural Development was allocated Rs 1,94,369 crore, also reflecting a 4% increase.
- The Department of Land Resources saw a significant rise with Rs 2,654 crore, a 51% increase.
Changes in Scheme Allocations
- The allocation for MGNREGS decreased by 66%, from Rs 88,000 crore to Rs 30,000 crore.
- PMAY-G saw a 66% increase to Rs 54,917 crore.
- PMGSY experienced a 73% increase, reaching Rs 19,000 crore.
Expenditure Patterns and Employment Trends
Under MGNREGS, wage payments accounted for around 70% of expenditure over the last five years, with the central government covering about 90% of the total costs.
- The VB-G RAM G Act mandates a 60:40 expenditure sharing between the Centre and states, with a 90:10 ratio for Northeast and Himalayan states.
- Average employment days under MGNREGS have averaged 48 days per household annually, with a temporary rise to 52 days during the COVID-19 pandemic in 2020-21.
- Less than 10% of households complete the full 100 days of work annually.
Wage Discrepancies and Housing Completion Rates
Reported that in 2025-26, workers in 20 out of 31 states/UTs received wages below the notified rate.
- In Andhra Pradesh, workers received Rs 268 against a notified Rs 307.
- In Tamil Nadu, wages were Rs 268 compared to the notified Rs 336.
For the Pradhan Mantri Awas Yojana-Gramin, though allocated Rs 54,917 crore, only 70% of targeted houses have been completed due to factors like land availability and COVID-19 disruptions.
