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2 Feb 2026·Source: The Indian Express
3 min
EconomyPolity & GovernanceNEWS

Budget 2026-27: ₹95,000 Crore Boost for Village Development Scheme

Despite no specific mention in the budget speech, VB-G RAMG receives ₹95,000 crore.

Despite no specific mention in the budget speech, the Village-Based Green Revolution and Modernisation of Agriculture (VB-G RAMG) scheme is set to receive a significant boost with an allocation of ₹95,000 crore. The total allocation for rural jobs stands at ₹1.25 lakh crore. The MGNREGS gets additional expenditure for the next FY to increased due to the scheme comes into effect over.

Key Facts

1.

VB-G RAMG allocation: ₹95,000 crore

2.

Total rural jobs allocation: ₹1.25 lakh crore

UPSC Exam Angles

1.

GS Paper 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

2.

Connects to the syllabus by addressing rural development, poverty alleviation, and agricultural modernization.

3.

Potential question types include statement-based MCQs, matching questions, and analytical mains questions.

Visual Insights

Budget 2026-27: Key Allocations for Rural Development

Highlights the budgetary allocations for village development and rural employment schemes in the 2026-27 budget.

Village Development Scheme Allocation
₹95,000 Crore

Significant boost to the Village-Based Green Revolution and Modernisation of Agriculture (VB-G RAMG) scheme, aiming to transform rural areas.

Total Allocation for Rural Jobs
₹1.25 Lakh Crore

Reflects the government's commitment to providing employment opportunities in rural areas, primarily through MGNREGS and related schemes.

More Information

Background

The concept of rural development in India has evolved significantly since independence. Initially, efforts focused on community development programs, aiming to improve infrastructure and livelihoods at the village level. These early initiatives laid the groundwork for later, more targeted interventions. The MGNREGS, a flagship program, guarantees wage employment to rural households, addressing poverty and unemployment. Over time, the approach to rural development has become more comprehensive, incorporating elements of economic growth, social justice, and environmental sustainability. The introduction of schemes like the National Rural Livelihood Mission (NRLM), also known as Aajeevika, aimed to empower women through self-help groups. These programs reflect a shift towards participatory development, where local communities play a central role in planning and implementation. The 73rd Constitutional Amendment Act further strengthened local governance by devolving powers to Panchayati Raj Institutions. The legal and constitutional framework for rural development is enshrined in several provisions. The Directive Principles of State Policy in the Constitution guide the state to promote the welfare of the people and ensure social and economic justice. Various acts and policies, such as the Land Acquisition Act and the Forest Rights Act, also have a significant impact on rural communities. These laws aim to balance development needs with the rights and livelihoods of rural populations.

Latest Developments

Recent government initiatives have focused on modernizing agriculture and promoting sustainable rural development. The PM-KISAN scheme provides income support to small and marginal farmers, while initiatives like the Soil Health Card scheme aim to improve soil fertility and productivity. These efforts are complemented by investments in rural infrastructure, such as roads, irrigation, and electrification. However, there are ongoing debates about the effectiveness and equity of rural development programs. Some argue that these programs are often poorly implemented and fail to reach the most vulnerable populations. Others emphasize the need for greater community participation and accountability in the planning and implementation of rural development projects. Institutions like NITI Aayog play a crucial role in evaluating and recommending improvements to rural development policies. The future outlook for rural development in India is shaped by several factors, including climate change, technological advancements, and demographic shifts. The government has set ambitious targets for increasing agricultural productivity, improving rural infrastructure, and reducing poverty. Achieving these goals will require a concerted effort to address the challenges of inequality, environmental degradation, and social exclusion. The focus is shifting towards creating resilient and self-sufficient rural communities.

Frequently Asked Questions

1. What are the key facts about the Village-Based Green Revolution and Modernisation of Agriculture (VB-G RAMG) scheme for UPSC Prelims?

The VB-G RAMG scheme is set to receive ₹95,000 crore. The total allocation for rural jobs, including MGNREGS, is ₹1.25 lakh crore. Remember these figures as they are important for the exam.

Exam Tip

Focus on the allocated amounts for VB-G RAMG and total rural jobs. These are high-probability facts for Prelims.

2. What is the Village-Based Green Revolution and Modernisation of Agriculture (VB-G RAMG) scheme and why is it important?

The VB-G RAMG scheme aims to boost village development through agricultural modernization. It's important because it signifies the government's commitment to rural development and agricultural advancement, potentially impacting the livelihoods of a large rural population.

3. How does the VB-G RAMG scheme relate to MGNREGS?

While VB-G RAMG focuses on agricultural modernization, MGNREGS guarantees wage employment in rural areas. The total allocation for rural jobs includes MGNREGS, indicating a coordinated approach to rural development.

4. Why is the VB-G RAMG scheme in the news recently?

The VB-G RAMG scheme is in the news because it is set to receive a significant boost with an allocation of ₹95,000 crore in the recent budget, despite not being explicitly mentioned in the budget speech.

5. What are the potential benefits and drawbacks of allocating such a large amount to the VB-G RAMG scheme?

Potential benefits include increased agricultural productivity, improved rural infrastructure, and enhanced livelihoods. A potential drawback could be inefficient implementation or misallocation of funds, hindering the scheme's effectiveness.

6. What reforms are needed to ensure the effective implementation of the VB-G RAMG scheme?

Reforms could include enhanced monitoring and evaluation mechanisms, greater transparency in fund allocation, and involvement of local communities in the planning and implementation processes.

7. How does the allocation to VB-G RAMG impact the common citizen in rural areas?

If implemented effectively, the allocation could lead to increased income opportunities, improved access to resources, and better living conditions for common citizens in rural areas through agricultural modernization and development.

8. What is the significance of the ₹1.25 lakh crore allocation for rural jobs?

The ₹1.25 lakh crore allocation highlights the government's focus on addressing rural unemployment and promoting economic opportunities in rural areas. This includes schemes like MGNREGS, aiming to provide livelihood security.

9. What are the recent developments related to rural development initiatives mentioned in the background context?

Recent developments include initiatives focused on modernizing agriculture, such as the PM-KISAN scheme providing income support to farmers and the Soil Health Card scheme aiming to improve soil fertility.

10. What are the important numbers to remember regarding the VB-G RAMG scheme and rural jobs allocation for the UPSC exam?

Remember ₹95,000 crore for VB-G RAMG and ₹1.25 lakh crore for total rural jobs allocation. These figures are crucial for answering factual questions in the exam.

Exam Tip

Create flashcards with these numbers and revise them regularly before the exam.

Practice Questions (MCQs)

1. Consider the following statements regarding the Village-Based Green Revolution and Modernisation of Agriculture (VB-G RAMG) scheme: 1. The scheme has been allocated ₹95,000 crore in the Budget 2026-27. 2. The scheme aims to boost rural jobs with a total allocation for rural jobs standing at ₹1.25 lakh crore. 3. The MGNREGS will receive additional expenditure due to the scheme coming into effect. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All the statements are correct as per the information provided in the news summary. The VB-G RAMG scheme has been allocated ₹95,000 crore. The total allocation for rural jobs stands at ₹1.25 lakh crore. The MGNREGS will receive additional expenditure due to the scheme coming into effect.

2. Which of the following is the primary objective of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?

  • A.To provide subsidized food grains to rural households
  • B.To guarantee 100 days of wage employment to rural households
  • C.To provide free housing to homeless rural families
  • D.To provide skill development training to rural youth
Show Answer

Answer: B

The primary objective of MGNREGA is to guarantee 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. This aims to provide a safety net and improve rural livelihoods. Other options are related to other government schemes but not the primary focus of MGNREGA.

3. Consider the following statements regarding the 73rd Constitutional Amendment Act: 1. It provides for the establishment of Panchayats at the village, intermediate, and district levels. 2. It mandates the reservation of seats for women in Panchayats. 3. It empowers the State Election Commission to conduct elections to the Panchayats. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: D

All the statements are correct. The 73rd Constitutional Amendment Act provides for the establishment of Panchayats at all three levels, mandates reservation for women, and empowers the State Election Commission to conduct Panchayat elections. This act is a landmark in decentralization and local governance.

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