Rural job scheme may get same funds in FY26 amid revival signs

The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), a vital safety net for the rural poor, is unlikely to receive increased funding in the FY26 budget.

- Rhik Kundu

Allocations are likely to remain at FY25 levels, reflecting the government's confidence in a recovering rural economy, two people aware of the matter said.

However, funding adjustments could be considered mid-year if severe disruptions, such as significant rural distress, arise, the people mentioned above said requesting anonymity.

The scheme's funding, closely tied to India's rural economic health, saw a spike in FY24 when economic challenges led to higher demand for work.