"Rural Ministry Budget Plummets to Historic Lows in Fiscal Year 2026, Reveals Data"

Government Expenditure Faces Sharp Decline in Rural Development Ministry

Before the financial year 2017-18, the government's accounts were divided into plan and non-plan expenditure categories. However, Ministry-wise details were only available for plan expenditure. The Rural Development Ministry, responsible for crucial schemes like MGNREGS, PM Awaas Yojana (Gramin), and PM Gram Sadak Yojana, experienced a significant decrease in expenditure. Government data reveals that only 51% of the budgetary allocation was utilized in the first nine months of the current fiscal year, marking the lowest spending in nine years compared to 63% in the previous fiscal year during the same period.

In absolute terms, the ministry's expenditure of Rs 97,125 crore in the first nine months was the lowest in the last six years. According to the Union government's monthly accounts data, the Rural Development Ministry has witnessed a continual decline in spending in the first three quarters of a fiscal year since 2020-21 but hit a new low in the current fiscal year. The Controller General of Accounts (CGA) portal data shows that the ministry could only utilize 51% of its overall budgetary allocation of Rs 1,90,40553 between April and December of FY 2025-26, the lowest since 2017-18.

Sources indicate that the decrease in expenditure can be attributed to the Finance Ministry's new spending norms in 2023-24, particularly the implementation of SNA SPARSH (Samayochit Pranali Ekikrit Sheeghra Hastaantaran), a cash management initiative for Centrally Sponsored schemes fund flow mechanism. Under SNA SPARSH, funds are released by the Centre for specific programs only after the state provides its share within the respective scheme. Additionally, lower spending on schemes like MGNREGS has contributed to the overall decline in expenditure.

During the current fiscal year, expenditure on MGNREGS, PM Awaas Yojana-Gramin (PMAY-G), and PM Gram Sadak Yojana (PMGSY) has seen a slowdown, leading to a downward revision in the ministry's overall budget at the revised estimate stage. The enactment of the VB—G RAM G Act, 2025, replacing the MGNREGA has also had implications on the ministry's spending.

With sluggish spending and the Finance Ministry's emphasis on avoiding "rush expenditure" in the last quarter of a fiscal year, the Rural Development Ministry may struggle to utilize its entire allocation. The Centre has allocated funds for key schemes like MGNREGS, PMAY-G, and PMGSY, but the slowdown in spending poses challenges for effective implementation.

In other news, India and Pakistan are set to clash in the U-19 World Cup Super Six match on Sunday. India aims to avenge their loss in last year's U-19 Asia Cup final, while Pakistan looks to continue their recent victories in the tournament. The match will be live-streamed on JioHotstar and telecast on the Star Sports Network.