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EconomyPIB10 June 2026

Centre unveils โ‚น1.25 lakh crore rural development push; new framework from July 1

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๐Ÿ“Œ Summary:

  • Union Rural Development Minister Shivraj Singh Chouhan chaired a meeting of State Rural Development Ministers on implementing Viksit Bharat GRAM, a new framework taking effect from July 1, 2026
  • Financial push: โ‚น30,000 crore already allocated under MGNREGA, plus an interim allocation of โ‚น95,692 crore released to States/UTs โ€” taking the total beyond โ‚น1.25 lakh crore
  • Funds will reach nearly 2.80 lakh Gram Panchayats, with each Panchayat receiving several lakhs of rupees for development works and rural asset creation
  • Worker-centric transition: the Minister stressed not a single worker should remain without work for even a day, with no disruption in employment generation, wage payments or statutory rights
  • Digital readiness: many States have advanced on DBT, SMS-based information, e-KYC and face authentication; 26 States have made budgetary provisions and four remaining States urged to expedite

๐ŸŽฏ UPSC Relevance: GS3 โ€” inclusive growth, rural employment (MGNREGA), DBT; GS2 โ€” Centre-State coordination, welfare scheme delivery

๐Ÿ“ Prelims Facts:

  • MGNREGA (2005) guarantees 100 days of wage employment per rural household per year
  • Total allocation announced exceeds โ‚น1.25 lakh crore (โ‚น30,000 cr MGNREGA + โ‚น95,692 cr interim)
  • New Viksit Bharat GRAM framework rolls out from 1 July 2026 to ~2.80 lakh Gram Panchayats

๐Ÿ”‘ Key Term: Direct Benefit Transfer (DBT) โ€” transfer of subsidies/benefits directly into beneficiaries bank accounts to cut leakages and delays.

MGNREGArural developmentViksit Bharat GRAMDBT

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