A parliamentary panel has expressed concern over the budgetary allocation for the Department of Rural Development for the 2026-27 fiscal, noting that while the total outlay has increased by 21 per cent, the bulk of the increase is earmarked for the new VB-GRAMG scheme.
The committee highlighted that funds for most existing programmes remain static, while the allocation for MGNREGA has been sharply reduced.
The Parliamentary Standing Committee on Rural Development and Panchayati Raj, in its report tabled in Parliament last week, said the Department of Rural Development has been entrusted with the 'huge task' of implementing a large number of schemes aimed at the upliftment of rural masses.
The committee noted that ₹2,28,768.81 crore has been allocated to the department at the Budget Estimates stage for 2026-27, which is 21.20 per cent higher than the BE for 2025-26.
However, the report pointed out that ₹95,692.31 crore of the total has been allocated solely to VB-GRAMG.
The committee described the current allocation as 'inadequate' and 'totally unacceptable', arguing that 'adequate budgetary allocation' is necessary to maintain the momentum of rural progress.
