Rural Ministry spending hits new low in FY26: Data, Pg6

Key Highlights:

• The Rural Development Ministry's expenditure in the first nine months of FY26 hit a 9-year low, utilizing only 51% of its budgetary allocation.
• In absolute terms, the ministry spent Rs 97,125 crore, the lowest in the last six years for the same period.
• MGNREGS expenditure decreased to Rs 65,124.44 crore in the first nine months of FY26, compared to Rs 81,037.65 crore in the same period of FY25.
• The VB-GRAM-G Act, 2025, replaced MGNREGA in December 2025.

Detailed Insights:

• The decline in spending is attributed to the Finance Ministry’s new spending norms, including the implementation of SNA SPARSH, which requires states to provide their share before funds are released by the Centre.
• Other rural development schemes like PM Awaas Yojana-Gramin (PMAY-G) and PM Gram Sadak Yojana (PMGSY) have also experienced a slowdown in spending during the current fiscal year.
• The ministry's allocation accounts for 4.2% of the Centre's total expenditure and includes initiatives like MGNREGS, PMAY-G, PMGSY, DDU-GKY, and NSAP.
• The Finance Ministry’s norms discourage ministries from "rush expenditure" in the last quarter of the fiscal year, potentially limiting the ministry's ability to utilize its entire allocation.

Key Concepts Involved:

• MGNREGS: A social security scheme providing at least 100 days of wage employment to rural households.
• SNA SPARSH: A cash management initiative for Centrally Sponsored Schemes (CSS) fund flow mechanism.
• PMAY-G: A scheme providing affordable housing to rural poor.
• PMGSY: A scheme to provide all-weather road connectivity to unconnected habitations in rural areas.