Government has announced comprehensive financial and policy initiative to provide fresh momentum to rural employment, workers’ security and the overall development of villages. The government announced an interim allocation of Rs 95,692 crore to States and Union Territories, taking the total allocation over Rs 1.25 lakh crore.
Union Minister for Agriculture & Farmers Welfare and Rural Development Shri Shivraj Singh Chouhan said that the new arrangement coming into effect from July 1, 2026. Chouhan said that this amount will reach nearly 2.80 lakh Gram Panchayats across the country, also emphasizing 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.
The allocations to states and UTs are as follows:
Andhra Pradesh Rs 7,707.21 crore, Arunachal Pradesh Rs 560.70 crore, Assam Rs 1,929.7 crore, Bihar Rs 6,715.83 crore, Chhattisgarh Rs 3,354.85 crore, Goa Rs 3.70 crore, Gujarat Rs 1,540.54 crore, Haryana Rs 590.19 crore, Himachal Pradesh Rs 1,203.28 crore, Jharkhand Rs 2,705.64 crore, Karnataka Rs 5,709.9 crore, Kerala Rs 3,136.44 crore, Madhya Pradesh Rs 6,252.03 crore, Maharashtra Rs 4,420.32 crore, Manipur Rs 581.99 crore, Meghalaya Rs 1,155.09 crore, Mizoram Rs 611.65 crore, Nagaland Rs 287.85 crore, Odisha Rs 3,763.80 crore, Punjab Rs 1,331.61 crore, Rajasthan Rs 7,581.87 crore, Sikkim Rs 97.57 crore, Tamil Nadu Rs 7,585.49 crore, Telangana Rs 3,825.31 crore, Tripura Rs 1,041.7 crore, Uttar Pradesh Rs 9,721.48 crore, Uttarakhand Rs 626.43 crore and West Bengal Rs 8,508.00 crore, taking the total allocation for States to Rs 92,550.17 crore. Among Union Territories, Puducherry has been allocated Rs 40.56 crore, Jammu & Kashmir Rs 1,151.2 crore, Andaman & Nicobar Islands Rs 4.44 crore, Ladakh Rs 85.98 crore, Dadra and Nagar Haveli and Daman and Diu Rs 9.02 crore and Lakshadweep Rs 0.32 crore, taking the total allocation for Union Territories to Rs 1,291.52 crore.
In addition to this provision for States and Union Territories, Rs 1,850.62 crore has been earmarked for Central administration and social audit, taking the total interim allocation to Rs 95,692.31 crore. This will accelerate regional development.
“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,” Chouhan.
