Union Budget 2026 Unveils Major Rural Employment Overhaul with Viksit Bharat Scheme
In a significant shift in rural employment policy, the Central government has announced the Viksit Bharat–Guarantee for Rozgar Aajeevika Mission (Grameen) (VB-G RAM G) in the Union Budget 2026-27, allocating a substantial Rs 95,692.31 crore for this new initiative. This move marks a pivotal transition from the long-standing Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), which has been allocated Rs 30,000 crore for the upcoming fiscal year.
Transition from MGNREGA to Viksit Bharat Rozgar Scheme
The VB-G RAM G promises to provide 125 days of employment per year, enhancing the previous guarantee under MGNREGA. Officials from the Rural Development Ministry have clarified that MGNREGA will continue to operate until the new scheme is fully implemented and all pending works are completed, ensuring a smooth transition for rural workers. The allocation for MGNREGA in 2026-27 is notably lower than the revised estimates of Rs 88,000 crore for 2025-26, reflecting the phased shift towards the new program.
Detailed Budget Allocations for Key Rural Development Schemes
Beyond the employment schemes, the Budget 2026-27 outlines significant funding for other critical rural initiatives:
- Jal Jeevan Mission (JJM): Allocated Rs 67,670 crore for 2026-27, slightly higher than the 2025-26 Budget Estimate of Rs 67,000 crore, aiming to boost rural water supply infrastructure.
- Pradhan Mantri Awas Yojana – Gramin (PMAY-G): Proposed at Rs 54,917 crore, a substantial increase from the 2025-26 Revised Estimates of Rs 32,500 crore, focusing on rural housing.
- Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM): Shown at Rs 19,200 crore for 2026-27, up from Rs 16,000 crore in 2025-26 Revised Estimates, to enhance livelihood opportunities.
- Pradhan Mantri Gram Sadak Yojana (PMGSY): Proposed at Rs 19,000 crore, compared with Rs 11,000 crore in the 2025-26 revised estimates, targeting rural road connectivity.
- Department of Land Resources: Allocated Rs 2,654.33 crore for 2026–27, with actual expenditure in 2025–26 revised estimates at Rs 1,757.4 crore.
Broader Economic Context and Implications
This budgetary focus on rural development aligns with the government's capital expenditure target of Rs 12.2 lakh crore for FY27, as highlighted in Budget 2026 Live Updates. The reallocation of funds from MGNREGA to the Viksit Bharat scheme underscores a strategic move towards more structured and extended employment guarantees, potentially impacting millions of rural households across India. Stakeholders are closely monitoring these changes, which are expected to reshape the rural employment landscape in the coming years.
