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Centre Unveils Rs 1.25 Lakh Crore Rural Development Push; New Framework to Roll Out from July 1

By IndianMandarins- 1 hour ago
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NEW DELHI (10.06.2026): Union Minister for Agriculture & Farmers Welfare and Rural Development Shivraj Singh Chouhan on 09.06.2026 chaired a meeting of State Rural Development Ministers regarding the implementation of 'Viksit Bharat GRAMG' in which the Government announced comprehensive financial and policy initiative to provide fresh momentum to rural employment, workers' security and the overall development of villages. 
Addressing a high-level meeting with ministers from States and Union Territories through video conferencing, Chouhan said that the historic new arrangement coming into effect from July 1, 2026, should ensure a completely smooth, worker-centric transition without any disruption. Union Minister of State Chandrasekhar Pemmasani also participated in the meeting.
Chouhan said during the meeting that this is not merely a transition of a scheme, but an issue connected with the lives and livelihoods of crores of workers. He categorically stated that "not a single worker should remain without work even for a day" and emphasized that no disruption in employment generation, wage payments or statutory rights would be acceptable.
He informed that the Central Government has already allocated Rs 30,000 crore under MGNREGA. In addition, an interim allocation of ₹95,692 crore has been released today to States and Union Territories. With this, the total allocation will exceed ₹1.25 lakh crore. Chouhan said that this amount will reach nearly 2.80 lakh Gram Panchayats across the country, ensuring that each Panchayat receives funds worth several lakhs of rupees. He stressed that the funds should be utilized for development works identified under the provisions of the Act so that employment generation and the creation of rural assets are both ensured.
He said that the Central Government is not only providing funds but also wants to ensure timely wage payments, protection of workers' rights and uninterrupted development works. He urged States to accord advance approvals to an adequate number of works so that implementation can begin at a fast pace from July 1 itself.
Speaking on digital and administrative preparedness, Chouhan said that many states have made remarkable progress in processes such as DBT, SMS-based information systems, e-KYC and face authentication, which indicate successful implementation of the new arrangement.
He informed that 26 States have already made budgetary provisions keeping in mind the objective of 'Viksit Bharat – Gramin Bharat', while Jharkhand, Karnataka, Telangana and Mizoram have been urged to complete the process at the earliest. He also said that he would personally write to the Chief Ministers of these States.
Directing the States, he asked them to issue State-level notifications at the earliest. Appreciating Mizoram, Puducherry and Andhra Pradesh for issuing notifications, he urged other States to expedite the process. He also directed states to notify agricultural peak seasons, ensure 100 per cent e-KYC and organize capacity-building and awareness programmes at district and block levels.
Shivraj Singh Chouhan said that works will be selected through Gram Panchayats and Gram Sabhas and finalized on the basis of these proposals. He also directed that there should be no reduction or disruption in employment generation and wage payments under MGNREGA till July 1.

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