NE RURAL DEVELOPMENT BUREAU
NEW DELHI, JUNE 10
In one of the country’s largest rural development interventions in recent years, the Centre has unveiled a financial package exceeding ₹1.25 lakh crore to power the transition to the Viksit Bharat GRAMG framework from July 1, 2026, promising uninterrupted employment, stronger worker protection and accelerated village development across India.
VIDEO | Delhi: At a press conference on the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission Gramin, Union Minister Shivraj Singh Chouhan says, "We have made the necessary arrangements for the transition period from MGNREGA to the Shriram scheme to ensure that it remains… pic.twitter.com/H9YFPyifKT
— Press Trust of India (@PTI_News) June 9, 2026
- Centre rolls out a massive ₹1.25 lakh crore rural development package ahead of July 1 transition under the Viksit Bharat GRAMG framework.
- ₹95,692 crore interim allocation released to ensure uninterrupted employment, timely wage payments and accelerated village infrastructure creation.
- Gram Panchayats and Gram Sabhas to spearhead project selection as nearly 2.80 lakh villages prepare for a new development architecture.
- Centre directs states to fast-track e-KYC, face authentication, notifications and work approvals to avoid disruption in livelihoods.
- “Not a single worker should remain without work even for a day,” says Shivraj Singh Chouhan, stressing worker-centric implementation.
- Twenty-six states complete budgetary preparations while four others are urged to expedite formalities before the July 1 rollout.
Chairing a virtual meeting of State Rural Development Ministers, Union Minister for Agriculture & Farmers Welfare and Rural Development Shivraj Singh Chouhan reviewed states’ preparedness for the landmark transition and underscored the need for a seamless implementation that safeguards the livelihoods of millions of rural workers. Union Minister of State Chandrasekhar Pemmasani also participated in the meeting.
Calling the transition far more than an administrative exercise, Chouhan said it directly concerns the lives of crores of workers.
“Not a single worker should remain without work even for a day,” he said, emphasizing that no disruption in employment generation, wage payments or statutory rights would be acceptable.
The minister announced that the Centre has already allocated ₹30,000 crore under MGNREGA, while an interim allocation of ₹95,692 crore has now been released to states and Union Territories, taking the overall allocation beyond ₹1.25 lakh crore.
The funds will flow to nearly 2.80 lakh Gram Panchayats, enabling each local body to undertake development projects worth several lakh rupees while simultaneously generating employment and creating durable rural assets.
Chouhan stressed that the government’s commitment extends beyond financial support to ensuring timely wage payments, protection of workers’ rights and uninterrupted execution of development works. He urged states to grant advance approvals for an adequate number of projects so implementation can commence immediately from July 1.
Highlighting the progress made in digital governance, he noted that many states have achieved significant milestones in Direct Benefit Transfer (DBT), SMS-based information systems, e-KYC and face authentication, strengthening readiness for the new framework.
He informed the meeting that 26 states have already made budgetary provisions aligned with the vision of “Viksit Bharat – Gramin Bharat,” while Jharkhand, Karnataka, Telangana and Mizoram have been urged to complete the process at the earliest. He added that he would personally write to the Chief Ministers of these states.
The minister also directed states to issue notifications without delay, appreciating Mizoram, Puducherry and Andhra Pradesh for already completing the process while urging others to follow suit. States were further advised to notify agricultural peak seasons, ensure 100 per cent e-KYC coverage, and conduct awareness and capacity-building programmes at district and block levels.
Reaffirming the importance of grassroots participation, Chouhan said development works would be identified through Gram Panchayats and Gram Sabhas, with project selection based on local proposals.
He also instructed states to ensure that employment generation and wage payments under MGNREGA continue without any reduction or interruption until the new framework becomes operational on July 1.
The Centre announced interim allocations for states and Union Territories as part of the ₹95,692.31 crore package. Among the largest beneficiaries are Uttar Pradesh (₹9,721.48 crore), West Bengal (₹8,508 crore), Tamil Nadu (₹7,585.49 crore), Rajasthan (₹7,581.87 crore), Andhra Pradesh (₹7,707.21 crore), Bihar (₹6,715.83 crore) and Madhya Pradesh (₹6,252.03 crore).
The allocation for all states stands at ₹92,550.17 crore, while ₹1,291.52 crore has been earmarked for Union Territories. An additional ₹1,850.62 crore has been allocated for central administration and social audit activities, taking the total interim package to ₹95,692.31 crore.
Describing the initiative as a crucial building block for creating “Viksit Gaon” on the path towards “Viksit Bharat,” Chouhan said its success would depend on the commitment, preparedness and active participation of every state.
He invited all states to participate in the National Rural Development Conference at the PUSA Institute, New Delhi, on June 28 and 29, where detailed deliberations will be held on the effective implementation of the new framework.
Expressing confidence in the collaborative approach, Chouhan said the initiative, under the leadership of Prime Minister Narendra Modi, would significantly contribute to transforming rural India while creating sustainable employment opportunities and improving the livelihoods of crores of workers.
