Rural budget allocations in India rise over 211% in a decade

Mumbai: Sustained fiscal commitment has driven rural transformation, with rural development budget allocations rising over 211 percent in a decade to Rs 2.73 lakh crore in 2026-27, according to an official statement.

The poverty has declined significantly, with extreme poverty at 5.3 percent in 2022-23 less than the global average and multidimensional poverty down to 11.28 percent in 2023 from 55.3 percent in 2005–06, the statement said.

Rural connectivity is near-universal, with the Pradhan Mantri Gram Sadak Yojana allocations rising from Rs 12,581 crore in 2016-17 to Rs 19,000 crore in 2026-27, up 51 percent. Housing-led security has expanded significantly with 3.70 crore rural homes built over 11 years and PMAY-G allocations increasing 266 percent from Rs 15,000 crore in 2016-17 to Rs 54,916.70 crore in 2026-27.

“An essential dimension of this transformation is the gradual shift away from a purely government-led model of development towards more community-driven, decentralized approaches. Local governments and grassroots institutions are increasingly recognized as critical actors in planning, implementation, and monitoring of development initiatives,” it said.

Direct fiscal transfers to panchayats rose from around Rs 2.36 lakh crore under the 15th Finance Commission (2021-26) to nearly Rs 4.35 lakh crore under the 16th Finance Commission (2026-31), enhancing local financial autonomy. The government highlighted women-led collectives as anchors of last-mile delivery, mobilizing 10.05 crore women across 90.09 lakh self-help groups supported by 9 lakh community cadres.

Between FY22 and FY26 (budget estimate), social services expenditure (SSE) grew at a compound annual growth rate (CAGR) of 12 percent, with education and health expenditures rising at 11 percent and 8 percent, respectively.

As of mid-January 2026, more than 99.6 percent of eligible habitations had been connected under Pradhan Mantri Gram Sadak Yojana (PMGSY-I).  (IANS)

Also Read: Cabinet approves Rs 4,583.64 crore to boost road connectivity via NH-56 in Gujarat