Centre Unveils US$ 13.09 Billion Rural Development Programme; New Framework to Roll Out from July 1
- IBEF
- June 11, 2026
The Centre has announced a major rural development initiative with a total allocation exceeding Rs. 1.25 lakh crore (US$ 13.09 billion) to strengthen employment generation and accelerate village development across the country. The new framework, titled ‘Viksit Bharat GRAMG’, will come into effect from July 1, 2026, and aims to ensure seamless implementation of rural employment and asset-creation activities. Chairing a meeting of State Rural Development Ministers, Union Minister for Agriculture and Farmers Welfare and Rural Development Mr. Shivraj Singh Chouhan emphasised that the transition should remain worker-centric and ensure that employment opportunities, wage payments and workers’ rights are not disrupted. He stated that the Centre has already allocated Rs. 30,000 crore (US$ 3.14 billion) under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), while an interim allocation of Rs. 95,692.31 crore (US$ 10.02 billion) has been released to States and Union Territories to support implementation.
The initiative is expected to benefit nearly 2.8 lakh Gram Panchayats by supporting development projects identified under local governance mechanisms while creating durable rural assets and generating employment opportunities. Mr. Chouhan urged States to provide advance approvals for projects and ensure timely wage payments to facilitate uninterrupted implementation from July 1. He also highlighted progress made by States in Direct Benefit Transfer (DBT), e-KYC, face authentication and digital governance systems. According to the Ministry, major allocations have been made to states including Uttar Pradesh, West Bengal, Andhra Pradesh, Tamil Nadu, Rajasthan, Bihar and Madhya Pradesh. The programme forms a key component of the government’s vision of ‘Viksit Gaon’ under the broader objective of Viksit Bharat 2047 and is expected to strengthen rural infrastructure, improve livelihoods and promote inclusive economic growth across India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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