Parliamentary Panel Flags MGNREGA Funding Cut Amid Rural Development Budget Increase

The Parliamentary Standing Committee on Rural Development and Panchayati Raj reported that the Department of Rural Development's budget for 2026-27 increased by 21.2% to Rs 2,28,768.81 crore, with Rs 95,692.31 crore allocated to the new VB-GRAMG scheme. However, funding for other major programmes like PMGSY, PMAY-G, DAY-NRLM, and NSAP remained largely unchanged, while MGNREGA's allocation was reduced to Rs 30,000 crore. The committee described the MGNREGA cut as inadequate and expressed concern over pending liabilities nearing Rs 25,000 crore, urging enhanced budgetary support to sustain rural development momentum amid inflationary pressures.