Centre Unveils Rs 1.25 Lakh Cr Rural Development Push; New Framework to Roll Out from July 1
Addressing ministers from States and Union Territories via video conferencing, Chouhan emphasized that the transition must remain worker-centric and seamless, ensuring that no rural worker faces any disruption in employment, wage payments or statutory benefits.
Union Minister of State Chandrasekhar Pemmasani informed the meeting that the Central Government has already allocated ₹30,000 crore under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In addition, an interim allocation of ₹95,692 crore has been released to States and Union Territories, taking the total allocation for rural employment programmes to over ₹1.25 lakh crore.
Chouhan described the transition as more than an administrative exercise, stating that it directly impacts the livelihoods of millions of rural workers. He stressed that "not a single worker should remain without work even for a day" and directed states to ensure uninterrupted employment generation and timely wage disbursement.
Shri Chouhan said that this amount will reach nearly 2.80 lakh Gram Panchayats across the country, ensuring that each Panchayat receives funds worth several lakhs of rupees. He stressed that the funds should be utilized for development works identified under the provisions of the Act so that employment generation and the creation of rural assets are both ensured.
He said that the Central Government is not only providing funds but also wants to ensure timely wage payments, protection of workers' rights and uninterrupted development works. He urged States to accord advance approvals to an adequate number of works so that implementation can begin at a fast pace from July 1 itself.
Speaking on digital and administrative preparedness, Shri Chouhan said that many states have made remarkable progress in processes such as DBT, SMS-based information systems, e-KYC and face authentication, which indicate successful implementation of the new arrangement.
He informed that 26 States have already made budgetary provisions keeping in mind the objective of 'Viksit Bharat – Gramin Bharat', while Jharkhand, Karnataka, Telangana and Mizoram have been urged to complete the process at the earliest. He also said that he would personally write to the Chief Ministers of these States.
Directing the States, he asked them to issue State-level notifications at the earliest. Appreciating Mizoram, Puducherry and Andhra Pradesh for issuing notifications, he urged other States to expedite the process. He also directed states to notify agricultural peak seasons, ensure 100 per cent e-KYC and organize capacity-building and awareness programmes at district and block levels.
Shri Shivraj Singh Chouhan said that works will be selected through Gram Panchayats and Gram Sabhas and finalized on the basis of these proposals. He also directed that there should be no reduction or disruption in employment generation and wage payments under MGNREGA till July 1.
During the meeting, Union Minister Shri Shivraj Singh Chouhan announced interim allocations for various States. The allocations are as follows – Andhra Pradesh ₹7,707.21 crore, Arunachal Pradesh ₹560.70 crore, Assam ₹1,929.7 crore, Bihar ₹6,715.83 crore, Chhattisgarh ₹3,354.85 crore, Goa ₹3.70 crore, Gujarat ₹1,540.54 crore, Haryana ₹590.19 crore, Himachal Pradesh ₹1,203.28 crore, Jharkhand ₹2,705.64 crore, Karnataka ₹5,709.9 crore, Kerala ₹3,136.44 crore, Madhya Pradesh ₹6,252.03 crore, Maharashtra ₹4,420.32 crore, Manipur ₹581.99 crore, Meghalaya ₹1,155.09 crore, Mizoram ₹611.65 crore, Nagaland ₹287.85 crore, Odisha ₹3,763.80 crore and Punjab ₹1,331.61 crore.
Similarly, allocations have been made for Rajasthan ₹7,581.87 crore, Sikkim ₹97.57 crore, Tamil Nadu ₹7,585.49 crore, Telangana ₹3,825.31 crore, Tripura ₹1,041.7 crore, Uttar Pradesh ₹9,721.48 crore, Uttarakhand ₹626.43 crore and West Bengal ₹8,508.00 crore, taking the total allocation for States to ₹92,550.17 crore. Among Union Territories, Puducherry has been allocated ₹40.56 crore, Jammu & Kashmir ₹1,151.2 crore, Andaman & Nicobar Islands ₹4.44 crore, Ladakh ₹85.98 crore, Dadra and Nagar Haveli and Daman and Diu ₹9.02 crore and Lakshadweep ₹0.32 crore, taking the total allocation for Union Territories to ₹1,291.52 crore. In addition to this provision for States and Union Territories, ₹1,850.62 crore has been earmarked for Central administration and social audit, taking the total interim allocation to ₹95,692.31 crore. This will accelerate regional development.
Shri Chouhan said that this initiative is an important instrument for building "Viksit Gaon" in pursuit of the goal of "Viksit Bharat". Its success, he said, will depend on the commitment, preparedness and active participation of States.
Published on:
10 June 2026
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