The MGNREGA scheme will continue till the VB-G RAM G is implemented, and the pending works are completed, Rural Development Ministry officials have said.
According to the Budget documents, the total allocation for the ministry’ Department of Rural Development, is Rs 1,94,368.81 crore, marginally higher than in the last fiscal, Rs 1,86,995.61 crore, as per the revised estimates.
The allocation for the Department of Land Resources for 2026-27 is Rs 2,654.33. In 2025-26, Rs 2,651 were allocated for this department, while the revised estimate puts the expenditure figure at Rs 1,757.4 crore.
The total expenditure on the MGNREGA programme, as per the revised estimates from 2025-26, was Rs 88,000 crore, while initially, a sum of Rs 86,000 crore was allocated.
The allocation for the Pradhan Mantri Gram Sadak Yojana (PMGSY) for 2026-27 is Rs 19,000 crore, the same as in 2025-26. As per the revised estimate, the spending in the last fiscal was Rs 11,000 crore.For the Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM), the allocation for 2026-27 is Rs 19,200 crore, while it was Rs 19,005 crore last year, and the spending was Rs 16,000 crore as per the revised estimate.
Rs 54,916.70 crore have been earmarked this year for the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G). In the last Budget, this amount was Rs 54,832.00, and the revised estimate pegged the expenditure at Rs 32,500.01 crore.
A revised estimate is the updated projection of the government’s expenditure based on actual trends.
Under the G-RAM G framework, eligible rural households continue to be legally entitled to a minimum number of days of paid employment each financial year, with work remaining demand-driven. Unlike the earlier regime, the new law allows a mix of unskilled, semi-skilled and locally relevant skilled work, enabling better income outcomes.
A key feature of G-RAM G is the mandatory linkage between employment generation and creation of durable community assets. Works undertaken under the programme are required to contribute to long-term rural infrastructure such as water conservation systems, irrigation facilities, rural roads, storage infrastructure, sanitation assets and climate-resilient agricultural works. States are required to demonstrate the utility and sustainability of assets created, strengthening outcome-based accountability.
Prior to the transition, MGNREGA had guaranteed at least 100 days of wage employment per financial year to rural households. Budgetary support for the programme rose steadily, from ₹11,300 crore in FY2006–07 to ₹33,000 crore in FY2013–14, and further to ₹86,000 crore in FY2024–25 (Budget Estimate stage), according to official data.
However, the Union Budget 2024–25 did not raise the allocation, with the ₹86,000 crore announced in the interim Budget remaining unchanged in the final Budget. During FY2023–24, the Finance Ministry had to provide additional funding of ₹3,400 crore due to higher-than-anticipated demand for work, taking total expenditure to ₹89,400 crore.
With inputs from PTI