Uttar Pradesh Government Unveils Massive Rs 25,500 Crore Rural Development Budget
The Uttar Pradesh state government has announced a substantial budgetary allocation of Rs 25,500 crore dedicated to rural development initiatives. This significant financial commitment is strategically aimed at boosting employment opportunities and enhancing infrastructure development across villages throughout the state.
Employment and Livelihood Schemes Receive Focused Funding
A key component of this allocation is Rs 5,544 crore designated for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS), which has been rechristened as VB-G-RAM-G. This figure represents a marginal increase from the Rs 5,372 crore allocated in the 2025-26 financial year. Analysts interpret this modest rise as an adjustment to account for inflation and to sustain current employment levels, rather than signaling a major expansion of the scheme's coverage.
Furthermore, the government has earmarked Rs 4,580 crore for the National Rural Livelihood Mission (NRLM). This funding is expected to accelerate the formation and strengthening of self-help groups, while simultaneously promoting skill development and fostering entrepreneurship at the grassroots rural level.
Major Push for Rural Housing and Road Connectivity
In a significant boost to rural housing, an allocation of Rs 6,102 crore has been made under the ambitious Pradhan Mantri Awas Yojana (PMAY). Historical data reveals that between 2016-17 and 2025-26, the state constructed 36.37 lakh housing units against a target of 36.57 lakh. Similarly, under the Chief Minister Awas Yojana (Gramin), 3.67 lakh units were built against a target of 4.61 lakh. Experts highlight that PMAY is a capital-intensive scheme with high visibility, making it a critical, high-impact intervention in rural governance.
For improving rural connectivity, a budgetary allocation of Rs 822 crore has been approved for strengthening the rural road network under the Pradhan Mantri Gram Sadak Yojana. This scheme focuses on providing all-weather road connectivity to unconnected habitations and upgrading existing rural roads.
Substantial Investments in Infrastructure, Irrigation, and Water Supply
The state government has also proposed substantial financial allocations aimed at fortifying infrastructure, irrigation facilities, and drinking water supply across rural areas. An amount of Rs 2,400 crore is proposed under the Immediate Economic Development Scheme to reinforce basic infrastructure in villages. This allocation is anticipated to support the development of community assets and other essential facilities, thereby accelerating local economic activity.
For irrigation and flood control projects, the government has proposed Rs 18,290 crore—marking a substantial 30% increase compared to the 2025-26 financial year. This enhanced allocation underscores the government's intensified focus on strengthening agricultural productivity and improving flood management systems to protect farmers and rural settlements.
Additionally, approximately Rs 22,676 crore has been earmarked for the Namami Gange programme and various rural water supply schemes, highlighting a comprehensive approach to water resource management and sanitation in rural Uttar Pradesh.
