Union Budget 2026-27 Allocates Rs 95,692 Crore Central Share for G Ram G Act
The Union Budget for the fiscal year 2026-27 has made a significant allocation of Rs 95,692.3 crore as the central share for the newly launched Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, commonly referred to as the G Ram G Act. This initiative represents the revamped version of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), aiming to enhance rural employment and livelihood opportunities across India.
Total Rural Development Outlay Exceeds Rs 1.9 Lakh Crore
The budgetary outlay for the rural development department for 2026-27 stands at over Rs 1.9 lakh crore, marking a notable increase from the revised allocation of slightly over Rs 1.86 lakh crore in the previous fiscal year 2025-26. This substantial funding underscores the government's commitment to bolstering rural infrastructure and welfare programs.
Centre Caps Share at 60% Under New G Ram G Scheme
A key departure in this budget is the implementation of a 60% cap on the central government's share under the G Ram G Act, aligning it with other centrally sponsored schemes. Consequently, state governments are required to contribute the remaining 40% of the funding. Rural Development Minister Shivraj Singh Chouhan emphasized that while the Centre's allocation exceeds Rs 95,692 crore, the total financial commitment for the G Ram G scheme, including states' contributions, will surpass Rs 1.5 lakh crore.
Rs 30,000 Crore Set Aside for MGNREGA Liabilities During Transition
Within the overall rural development budget, a specific allocation of Rs 30,000 crore has been earmarked under the MGNREGA scheme head. This funding is intended to address existing liabilities and operational requirements as the transition from the old MGNREGA framework to the new G Ram G Act takes place.
Expenditure Secretary V Vualnam clarified this allocation, stating, "The provision for the old scheme in the budget reflects the legacy of inefficient implementation by states in the past. This Rs 30,000 crore allocation covers the carryover of those liabilities." This move aims to ensure a smooth shift while managing outstanding obligations from the previous scheme.
The budget's focus on rural development through the G Ram G Act highlights efforts to streamline employment guarantee mechanisms and foster sustainable livelihoods in gramin areas, with a collaborative funding model between the Centre and states.
