22 Mar 2026, Sun

New Delhi: The Union Budget has delivered a significant boost to rural employment schemes, with the government earmarking a combined allocation of ₹1,25,692.31 crore for VB-GRAMG and MGNREGS, marking a 43% increase compared to the Revised Estimate (RE) of ₹88,000 crore for MGNREGS in 2025-26.

According to Budget documents, ₹95,692.31 crore has been allocated to the VB-GRAMG scheme, while ₹30,000 crore has been set aside for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The substantial hike underscores the government’s renewed focus on strengthening rural livelihoods, job creation, and income security.

Focus on Rural Growth and Employment

Officials said the enhanced allocation aims to address rising demand for rural employment, improve asset creation in villages, and support economically vulnerable households. MGNREGS continues to act as a crucial safety net, particularly during periods of agrarian distress and economic uncertainty.

The increased spending is also expected to stimulate rural consumption, improve infrastructure at the grassroots level, and provide steady employment opportunities to millions of rural workers across the country.

Key Budget Highlights:

  • VB-GRAMG allocation: ₹95,692.31 crore

  • MGNREGS allocation: ₹30,000 crore

  • Total rural employment outlay: ₹1,25,692.31 crore

  • Increase over RE (2025-26): 43%

Economists believe the higher allocation could have a positive multiplier effect on the rural economy, supporting both short-term employment and long-term development goals.

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