VB-G RAM G & PMAY-G account for 63 pc of Dept of Rural Development Budget: Report
An analysis of the rural development ministry Budget by PRS Legislative research said that VB-G RAM G, for which Rs 95,692 crore has been allocated in the Budget, constitutes around 40 per cent of the total budget of the Ministry of Rural Development.
PMAY-G has a 23 per cent share in the ministry budget, followed by MGNREGS (12 per cent), NRLM (8 per cent), PMGSY (8 per cent) and NSAP (4 per cent).
Of the total allocation to the Rural Development Department in 2026-27, VB-G RAM G (40 per cent) and PMAY-G (23 per cent) together constitute 63 per cent of the total gross expenditure of the ministry. This is followed by MGNREGS (12 percent), NRLM (8 percent), PMGSY (8 percent) and National Social Assistance Scheme (4 percent).
In 2026-27, 1,97,023 billion rupees were allocated to the Ministry of Rural Development; this is 4 percent higher than the revised 2025-26 estimates.
The Ministry of Rural Development has been allocated Rs 1,94,369 billion, which is 4 percent higher than the revised estimates for 2025-26. Rs 2.654 billion was allocated to the Department of Land Resources; this is 51 per cent higher than the revised estimates for 2025-26.
This year, the allocation for MGNREGS was Rs 30,000 billion; this was 66 percent less than the Rs 88,000 Million in last year’s revised estimate. All other programs saw higher allocations compared to last fiscal year; There was a 66 percent increase in the allocation of PMAY-G to Rs 54.917 billion. PMGSY saw a 73 per cent increase in allocations at 19,000 billion rupees compared to last year’s revised estimate.
The report also highlighted that wage payments under MGNREGS constituted approximately 70 percent of the expenditure under the program in the last five years.
Material cost constituted 26 per cent of the total expenditure, of which about 20 per cent was borne by the Centre. Thus, the Center assumed around 90 percent of the total expenditure in the programme.
“With the change in the fund sharing scheme under the VB-G RAM G Act, the expenditure by state governments on the scheme may increase,” he said.
Under the VB-G RAM G Act, which provides 125-day work guarantee, the Center and state governments will share expenses in the ratio of 60:40, except in the Northeastern and Himalayan states, where the ratio will be 90:10.
The report also stated that employment under MGNREGS in the last decade averaged around 48 days per household per year.
Less than 10 percent of participating households complete 100 days of study. In 2020-21, the average working day per household increased to 52 days due to the Covid-19 pandemic.
Job creation slowed down in subsequent years, with 50 days per household recorded in 2024-25. An average of seven crore households demanded work during 2017-25, of which six crore households (90 per cent) were able to benefit from work.
It was also noted that in recent years the actual wage paid to workers was often lower than the reported rate. The report said that in 2025-26 (as of December 2025), workers’ wages in 31 states and Union Territories were below the notified wage rate in 20 states and Union Territories.
In Andhra Pradesh, workers received 268 rupees against a reported 307 rupees, while in Chhattisgarh the figures were 245 rupees against 261 rupees and in Gujarat, 264 rupees against 288 rupees.
In Karnataka, workers received Rs 342 compared to Rs 370 reported. The gap was wider in Rajasthan (Rs 221 versus Rupee 281) and Tamil Nadu (Rs 268 versus Rupee 336); In Telangana, workers received Rs 259 as against the reported Rs 307.
In rural housing, Rs 54.917 billion was given to Pradhan Mantri Awas Yojana-Gramin, an increase of 69 percent.
However, with delays linked to land availability, migration, Covid-related disruptions and restrictions at the beneficiary level, only around 70 per cent of the targeted homes across the phases have been completed so far.
