As the VB-G RAM G scheme is about to be launched, the Center has allotted ₹95,692.31 crore has been allocated for this ₹30,000 crore for MGNREGA.
Rural Development Minister Shivraj Singh Chouhan said the overall budget of the Rural Development Department has increased by around 21 per cent (PTI).Rural Development Minister Shivraj Singh Chauhan The overall budget of the rural development department has increased by around 21 percent and emphasized that the budget has been allocated for the VB-G RAM G project, which will lead the nation towards “self-reliant and developed villages”.
Viksit Bharat-Garantee for Rozgar Aajeevika Mission (Grameen) (VB-G RAM G), which promises 125 days of work a year, will replace the two-decade-old UPA-era rural employment scheme formed under the Mahatma Gandhi National Rural Employment Guarantee Act.MGNREGA), 2005.
The MGNREGA scheme will continue till the VB-G RAM G is implemented and the pending works are completed, officials of the Ministry of Rural Development said.
The total expenditure on MGNREGA program as per revised estimates from 2025-26 was ₹88,000 crore, while initially, a sum ₹86,000 crore was allocated.
Chouhan said along with the Centre’s allocation, states will also allocate funds to the VB-G RAM G scheme and the total expenditure is expected to ₹1,51,000 crores.
He also said, based on the recommendation of Dr 16th Finance CommissionPanchayats will get another ₹55,990 crore, which together will help build “developed, self-reliant” villages.
“Today’s budget is historic and unprecedented. It is a budget to build a developed India. It will lay the foundation for a self-reliant India by 2047… Emphasis is on reforms,” he said.
According to the budget documents, the total allocation for the Department of Rural Development ₹1,94,368.81 crore, an increase of about 3.5 per cent over last year’s allocation of Rs 1,87,754.53 crore. Compared to the revised estimate, the amount shows a 3.94 percent increase for this year.
Allocation for Department of Land Resources for 2026-27 ₹2,654.33. In 2025-26, ₹2,651 was earmarked for this department, while the Revised Estimates hold the expenditure figures ₹1,757.4 crore.
Allocation for Pradhan Mantri Gram Sadak Yojana (PMGSY) for 2026-27 ₹19,000 crore, the same as in 2025-26. According to the revised accounts, the expenditure incurred in the last financial year ₹11,000 crores.
Allocation for Deendayal Antyodaya Yojana-National Rural Livelihood Mission (DAY-NRLM), 2026-27 ₹19,200 crore was Rs ₹19,005 crore was spent last year ₹16,000 crore as per revised estimates.
₹54,916.70 crore has been allocated for Pradhan Mantri Awas Yojana-Grameen (PMAY-G) this year. This amount was in the last budget ₹54,832.00, and incurred in the Revised Estimates ₹32,500.01 crore.
A revised estimate is an updated estimate of government spending based on actual trends.

