An analysis of the Budget for the rural development ministry done by the PRS Legislative research said the VB-G RAM G, which was allocated Rs 95,692 crore in the Budget, accounts for around 40 per cent of the total budget for the Department of Rural Development.
The PMAY-G has a share of 23 per cent in the department budget, followed by MGNREGS (12 per cent), NRLM (8 per cent), PMGSY (8 per cent), and NSAP (4 per cent).
In 2026-27, of the total allocation to the Department of Rural Development, VB-G RAM G (40 per cent) and PMAY-G (23 per cent) together accounts for 63 per cent of the ministry’s total gross expenditure. This is followed by MGNREGS (12 per cent), NRLM (8 per cent), PMGSY (8 per cent), and National Social Assistance Programme (4 per cent).
In 2026-27, the Ministry of Rural Development has been allocated Rs 1,97,023 crore, 4 per cent higher than the revised estimates of 2025-26.
The Department of Rural Development has been allocated Rs 1,94,369 crore, 4 per cent higher than the revised estimates of 2025-26. The Department of Land Resources has been allocated Rs 2,654 crore, which is 51 per cent higher than the revised estimates of 2025-26.
The allocation for the MGNREGS this year was Rs 30,000 crore, 66 per cent less than Rs 88,000 crore in the revised estimate last year. All other schemes have seen higher allocations compared to the last fiscal year, with PMAY-G seeing an increase of 66 per cent in allocation at Rs 54,917 crore. PMGSY has seen a 73 per cent increase in allocations at Rs 19,000 crore compared to last year’s revised estimate.
The report also highlighted that under MGNREGS, in the last five years, wage payments accounted for around 70 per cent of the expenditure under the scheme.
Material cost accounted for 26 per cent of total expenditure, of which about 20 per cent has been borne by the Centre. Thus, the Centre has borne around 90 per cent of the total expenditure on the scheme.
“With the change in fund sharing pattern under the VB-G RAM G Act, the expenditure by state governments on the scheme may increase,” it said.
Under the VB-G RAM G Act, which provides guarantee for 125 days of work, the Centre and state governments will share the expenditure in 60:40 ratio, except for the Northeast and Himalayan states where the ratio will be 90:10.
The report also said over the last decade, employment under MGNREGS has averaged around 48 days per household per year.
Less than 10 per cent of participating households complete 100 days of work. In 2020-21, average days of employment increased to 52 days per household due to the Covid-19 pandemic.
Employment generation moderated in subsequent years, recording 50 days per household in 2024-25. On an average, seven crore households demanded work during 2017-25, of which six crore households (90 per cent) could avail work.
It also said over the past years, actual wage paid to workers has often been lower than the notified rate. In 2025-26, (as of December 2025), out of 31 states and Union Territories, wages received by workers were below the notified wage rate in 20 states and Union Territories, the report said.
In Andhra Pradesh, workers received Rs 268 against a notified Rs 307, while in Chhattisgarh the figures were Rs 245 versus Rs 261, and Rs 264 against Rs 288 in Gujarat.
In Karnataka, workers got Rs 342 compared to the notified Rs 370. The gap was wider in Rajasthan (Rs 221 versus Rs 281) and Tamil Nadu (Rs 268 versus Rs 336), while in Telangana workers received Rs 259 against a notified Rs 307.
In rural housing, the Pradhan Mantri Awas Yojana-Gramin has been given Rs 54,917 crore, a 69 per cent increase.
However, only about 70 per cent of the targeted houses across phases have been completed so far, with delays linked to land availability, migration, Covid disruptions, and beneficiary-level constraints.