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Centre Announces ₹1.25 Lakh Crore Rural Development Push; New Framework to Take Effect from July 1

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New Delhi: Union Minister for Rural Development and Agriculture & Farmers Welfare, , chaired a meeting of State Rural Development Ministers to review preparations for the implementation of the new rural development framework under the vision of a “Developed India”. The meeting was held via video conference and was attended by Union Minister of State .

Addressing the meeting, Chouhan announced a major financial package exceeding ₹1.25 lakh crore aimed at strengthening rural employment, worker welfare, and village infrastructure across the country. The new system is scheduled to come into effect on July 1, 2026, and the minister stressed that the transition must be smooth, worker-centric, and free from disruptions.

He emphasized that the reform is not merely a policy change but a significant step affecting the livelihoods of millions of rural workers. Reiterating the government’s commitment, Chouhan said that no worker should remain unemployed even for a single day and that wage payments and legal entitlements must continue without interruption.

The minister informed states that the Centre had already allocated ₹30,000 crore under MGNREGA. In addition, an interim allocation of ₹95,692 crore has now been released to states and Union Territories, taking the total financial commitment beyond ₹1.25 lakh crore.

According to Chouhan, the funds will reach nearly 2.8 lakh Gram Panchayats, providing each panchayat with substantial financial resources for approved development projects. He urged states to ensure that the funds are utilized for creating durable rural assets while simultaneously generating employment opportunities.

The minister highlighted that the government is focused not only on fund allocation but also on ensuring timely wage payments, protection of workers’ rights, and uninterrupted implementation of development projects. States were advised to approve an adequate number of projects in advance so that work can begin immediately from July 1.

Reviewing digital preparedness, Chouhan noted significant progress by several states in implementing Direct Benefit Transfer (DBT), SMS-based communication systems, e-KYC, and face authentication technologies, which are expected to support the smooth rollout of the new framework.

He further stated that 26 states have already made budgetary provisions for the initiative, while Jharkhand, Karnataka, Telangana, and Mizoram have been urged to complete the process at the earliest. Chouhan said he would personally write to the chief ministers of these states to expedite action.

The minister also directed states to issue necessary notifications promptly. He appreciated Mizoram, Puducherry, and Andhra Pradesh for already issuing notifications and urged other states to follow suit. Additional instructions included notifying peak agricultural seasons, ensuring 100 percent e-KYC compliance, and conducting awareness and capacity-building programmes at district and block levels.

Chouhan emphasized that project selection will be carried out through Gram Panchayats and Gram Sabhas, ensuring grassroots participation in development planning. He also directed states to ensure that employment generation and wage payments under MGNREGA remain unaffected during the transition period.

During the meeting, the minister announced interim allocations for states and Union Territories. Major allocations include 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), Madhya Pradesh (₹6,252.03 crore), Karnataka (₹5,709.9 crore), Maharashtra (₹4,420.32 crore), Telangana (₹3,825.31 crore), and Odisha (₹3,763.80 crore). States will collectively receive ₹92,550.17 crore, while Union Territories have been allocated ₹1,291.52 crore. An additional ₹1,850.62 crore has been earmarked for central administration and social audits, bringing the total interim allocation to ₹95,692.31 crore.

Calling the initiative a key pillar of the vision of a “Developed India,” Chouhan said that building developed villages is essential to achieving national development goals. He noted that the programme’s success would depend on the commitment, preparedness, and active participation of states.

The minister also invited all states to participate in the National Rural Development Conference scheduled to be held on June 28-29, 2026, at the Pusa Institute in New Delhi, where detailed discussions on effective implementation of the programme will take place.

Expressing confidence in the collective efforts of the Centre and states under the leadership of Prime Minister , Chouhan said the initiative would play a transformative role in rural India by generating sustainable employment opportunities and improving the quality of life for millions of rural workers.

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