The Central Government has announced an interim allocation of Rs 95,692.31 crore to states and Union Territories under its rural development initiative. Combined with the earlier Rs 30,000 crore allocation under MGNREGA, the total funding commitment now exceeds Rs 1.25 lakh crore, benefiting nearly 2.8 lakh gram panchayats across the country and supporting employment generation and village development.
KEY HIGHLIGHTS
• Rs 95,692.31 crore allocated to states and Union Territories
• Total rural employment funding crosses Rs 1.25 lakh crore
• Nearly 2.8 lakh gram panchayats expected to benefit
• VB-GRAM-G Mission to be implemented from July 1
• Uttar Pradesh receives the highest allocation of Rs 12,221.48 crore
• West Bengal allocated Rs 8,508 crore
• Tamil Nadu receives Rs 7,957.57 crore
• Focus on digital systems including DBT, e-KYC and face authentication
New Delhi, June 09 In a major push for rural development and employment generation, the Union Ministry of Rural Development has announced an interim allocation of Rs 95,692.31 crore to states and Union Territories, taking the total funding commitment under rural employment initiatives beyond Rs 1.25 lakh crore.
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Chairing a virtual meeting of Rural Development Ministers from states and Union Territories, Union Rural Development Minister Shivraj Singh Chouhan said that the allocation, combined with the previously sanctioned Rs 30,000 crore under MGNREGA, reflects the Centre’s commitment to strengthening rural infrastructure, generating employment and improving livelihoods across villages.
The minister stated that the funds would reach nearly 2.8 lakh gram panchayats across the country, ensuring substantial financial support for development projects at the grassroots level. According to him, the initiative is aligned with the vision of Prime Minister Narendra Modi to build a developed and self-reliant rural India through sustained investment and policy support.
Chouhan emphasized that the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (VB-GRAM-G) will come into force from July 1 and states must ensure a seamless transition without affecting employment generation or wage payments to workers. He directed states to identify and approve development works in advance so that implementation can begin immediately once the new framework becomes operational.
Highlighting the importance of transparency and efficiency, the minister noted that several states have made significant progress in implementing Direct Benefit Transfer (DBT), SMS-based information systems, e-KYC verification and face authentication technologies, which will help ensure timely payments and better monitoring of welfare schemes.
He also informed that 26 states have already made budgetary provisions in line with the objectives of Viksit Bharat – Gramin Bharat, while Jharkhand, Karnataka, Telangana and Mizoram have been asked to complete the process at the earliest. Chouhan further stated that he would personally communicate with the Chief Ministers of these states to expedite preparations.
The minister appreciated the efforts of Mizoram, Puducherry and Andhra Pradesh for issuing notifications related to the new arrangement and urged other states to accelerate implementation. He also instructed states to notify agricultural peak seasons, achieve 100 percent e-KYC coverage, and conduct awareness and capacity-building programmes at district and block levels.
Some of the major allocations include:
| State | Allocation |
|---|---|
| Uttar Pradesh | Rs 12,221.48 crore |
| West Bengal | Rs 8,508 crore |
| Tamil Nadu | Rs 7,957.57 crore |
| Andhra Pradesh | Rs 7,707.21 crore |
| Rajasthan | Rs 7,581.87 crore |
| Bihar | Rs 6,715.83 crore |
| Madhya Pradesh | Rs 6,252.03 crore |
| Karnataka | Rs 5,709.09 crore |
In addition, Rs 1,850.62 crore has been earmarked for Central administration and social audit activities, taking the total interim allocation to Rs 95,692.31 crore. The government believes this funding will accelerate regional development, strengthen rural infrastructure and create sustainable employment opportunities across India.
The release of Rs 95,692 crore marks one of the largest rural development funding initiatives undertaken by the Centre in recent years. With total MGNREGA-related funding now exceeding Rs 1.25 lakh crore, the government aims to strengthen employment generation, improve rural infrastructure and ensure inclusive growth across villages while preparing for the rollout of the VB-GRAM-G Mission from July 1.
FAQ Section
Q1. How much money has been allocated by the Rural Development Ministry?
The Centre has allocated Rs 95,692.31 crore to states and Union Territories for rural development and employment initiatives.
Q2. What is the VB-GRAM-G Mission?
VB-GRAM-G stands for Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), a new rural employment and livelihood initiative scheduled to begin on July 1.
Q3. What is the total MGNREGA-related funding announced so far?
Including previous allocations, total funding now exceeds Rs 1.25 lakh crore.
Q4. Which state received the highest allocation?
Uttar Pradesh received the highest allocation at Rs 12,221.48 crore.
Q5. How many gram panchayats are expected to benefit?
Nearly 2.8 lakh gram panchayats across India are expected to receive funding support.
