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

Mumbai, Feb 14
Sustained fiscal commitment has driven rural transformation, with rural development budget allocations rising over 211 per cent 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 per cent in 2022-23 less than the global average and multidimensional poverty down to 11.28 per cent in 2023 from 55.3 per cent 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 per cent.

Housing‑led security has expanded significantly with 3.70 crore rural homes built over 11 years and PMAY‑G allocations increasing 266 per cent 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, decentralised approaches. Local governments and grassroots institutions are increasingly recognised 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, mobilising 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 per cent, with education and health expenditures rising at 11 per cent and 8 per cent, respectively.

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

Access to improved drinking water, household electrification, and rural sanitation rose from 22 per cent in 2016 to 64.3 per cent in 2025. Jal Jeevan Mission expanded tap‑water access from 3.23 crore households in 2019 to about 15.74 crore by November 2025, the statement noted.