The Central Government has announced a rural development package exceeding ₹1.25 lakh crore as it prepares to implement the new “Viksit Bharat GRAMG” framework from July 1, 2026. The announcement was made during a meeting chaired by Union Minister for Agriculture & Farmers Welfare and Rural Development Shivraj Singh Chouhan with State Rural Development Ministers through video conferencing on June 9.
The government said the transition to the new framework should take place without disrupting employment, wage payments, or workers’ rights under existing rural employment programmes. Officials were instructed to ensure that rural workers continue receiving work opportunities during the transition period.
According to the government, ₹30,000 crore has already been allocated under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). An additional interim allocation of ₹95,692.31 crore has now been released to States, Union Territories, and administrative mechanisms, taking the total allocation beyond ₹1.25 lakh crore.
The funds are expected to support employment generation, timely wage payments, and the creation of rural assets through Gram Panchayat-led development works across the country.
Key Highlights
- The Centre announced a rural development allocation exceeding ₹1.25 lakh crore.
- An interim allocation of ₹95,692.31 crore has been released to States and Union Territories.
- ₹30,000 crore had already been allocated under MGNREGA.
- The new “Viksit Bharat GRAMG” framework will come into effect from July 1, 2026.
- Development works will be selected through Gram Panchayats and Gram Sabhas.
- Twenty-six states have completed budgetary provisions, while four states have been asked to expedite the process.
Focus on Smooth Transition and Employment Continuity
During the meeting, Shivraj Singh Chouhan emphasised that the transition to the new framework affects the livelihoods of millions of rural workers and should be implemented without disruption.
He stated that no worker should remain without employment during the transition period and stressed that interruptions in wage payments, employment generation, or statutory entitlements would not be acceptable.
The minister said the funds would reach nearly 2.80 lakh Gram Panchayats across the country, with each Panchayat receiving several lakhs of rupees for approved development works. States were asked to provide advance approvals for sufficient projects so that implementation could begin immediately on July 1.
He also directed that employment generation and wage payments under MGNREGA should continue without reduction until the new framework takes effect.
Also Check: BHAVYA Portal Launched: Government to Develop 100 Industrial Parks Under BHAVYA Scheme
States Asked to Strengthen Administrative Preparedness
The Centre reviewed the preparedness of States in areas such as Direct Benefit Transfer (DBT), SMS-based information systems, e-KYC, and face authentication. According to the minister, many states have made significant progress in these processes.
Twenty-six states have already made budgetary provisions aligned with the objectives of “Viksit Bharat – Gramin Bharat.” However, Jharkhand, Karnataka, Telangana, and Mizoram have been urged to complete the process quickly.
States were also directed to issue state-level notifications at the earliest. Mizoram, Puducherry, and Andhra Pradesh were acknowledged for already issuing notifications. Other states were asked to accelerate their preparations.
In addition, states were instructed to notify agricultural peak seasons, ensure 100% e-KYC compliance, and conduct awareness and capacity-building programmes at district and block levels.
Interim Allocation Across States and Union Territories
The Centre announced interim allocations for States amounting to ₹92,550.17 crore.
Among the major allocations, Uttar Pradesh received ₹9,721.48 crore, West Bengal ₹8,508.00 crore, Andhra Pradesh ₹7,707.21 crore, Rajasthan ₹7,581.87 crore, Tamil Nadu ₹7,585.49 crore, Bihar ₹6,715.83 crore, Madhya Pradesh ₹6,252.03 crore, Karnataka ₹5,709.90 crore, Maharashtra ₹4,420.32 crore, Telangana ₹3,825.31 crore, Odisha ₹3,763.80 crore, and Kerala ₹3,136.44 crore.
Other allocations included Assam (₹1,929.70 crore), Punjab (₹1,331.61 crore), Himachal Pradesh (₹1,203.28 crore), Meghalaya (₹1,155.09 crore), Jharkhand (₹2,705.64 crore), Gujarat (₹1,540.54 crore), Haryana (₹590.19 crore), Manipur (₹581.99 crore), Arunachal Pradesh (₹560.70 crore), Mizoram (₹611.65 crore), Uttarakhand (₹626.43 crore), Tripura (₹1,041.70 crore), Sikkim (₹97.57 crore), Nagaland (₹287.85 crore), Goa (₹3.70 crore), and Chhattisgarh (₹3,354.85 crore).
Union Territories were allocated a combined ₹1,291.52 crore. Jammu and Kashmir received ₹1,151.20 crore, Puducherry ₹40.56 crore, Ladakh ₹85.98 crore, Dadra and Nagar Haveli and Daman and Diu ₹9.02 crore, Andaman and Nicobar Islands ₹4.44 crore, and Lakshadweep ₹0.32 crore.
An additional ₹1,850.62 crore has been earmarked for central administration and social audits, taking the total interim allocation to ₹95,692.31 crore.
The Centre also invited states to participate in the National Rural Development Conference scheduled to be held at the PUSA Institute in New Delhi on June 28 and 29, where implementation-related discussions will take place.
Source: Ministry of Rural Development
