NEW DELHI: A Parliamentary panel has expressed concern over the budgetary allocation for the Department of Rural Development for 2026-27, noting that while the total outlay has increased by 21%, the bulk of the increase is earmarked for the new VB-GRAMG scheme. The committee highlighted that funds for existing programmes remain static, while the allocation for MGNREGA has been sharply reduced.
The Parliamentary Standing Committee on Rural Development and Panchayati Raj, in its report tabled in Parliament last week, said the Department of Rural Development (DoRD) has been entrusted with the task of implementing schemes aimed at the upliftment of rural masses and therefore it is imperative that flagship programmes are not “left in the lurch” for want of adequate financial support.
The committee noted that `2,28,768.81 crore has been allocated to the department at the Budget Estimates (BE) stage for 2026-27, which is 21.20% higher than the BE for 2025-26. However, the report pointed out that Rs 95,692.31 crore has been allocated solely to VB-GRAMG.
“Therefore, barring VB-GRAMG, funds for other major schemes like PMGSY, PMAY-G, DAY-NRLM and NSAP have been kept static and moreover, funds for MGNREGA has been drastically reduced to Rs 30,000 crore,” the report stated.
The panel also said such allocation is “inadequate” and “may be suitably enhanced”. It noted that pending liabilities under MGNREGA are expected to approach nearly Rs 25,000 crore by the end of the year.
The panel also observed a gap between allocation and spending the previous year. Against an allocation of Rs 1,86,995.61 crore in 2025-26, actual expenditure at the Revised Estimates stage stood at Rs 99,090.47 crore.
The report recommended that the department prepare quarterly and monthly expenditure plans in advance in consultation with stakeholders.