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Government Allocates ₹126,000 Crore for Rural Development and NREGS Legacy Settlement in Strategic Fiscal Move

Agency Source: Times of India Bureau Release: February 1, 2026 | 22:31 IST
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In a significant fiscal maneuver, the government has earmarked a substantial ₹126,000 crore to bolster rural infrastructure and address longstanding financial obligations under the National Rural Employment Guarantee Scheme (NREGS). The allocation comprises two major components: ₹96,000 crore designated for the G Ram G initiative, a flagship rural development program, and ₹30,000 crore specifically to clear legacy dues associated with NREGS. This strategic disbursement underscores a dual-pronged approach aimed at accelerating rural economic growth while simultaneously resolving historical liabilities that have impacted scheme implementation. The G Ram G funding is expected to enhance agricultural productivity, rural connectivity, and livelihood opportunities, aligning with broader national development goals. Concurrently, the allocation for NREGS legacy dues seeks to stabilize the scheme's operational framework, ensuring timely wage payments and material costs, thereby reinforcing its social safety net function. Analysts view this consolidated financial commitment as a calculated effort to stimulate rural demand, improve fiscal transparency, and strengthen governance mechanisms in key welfare programs. The move is anticipated to have multiplier effects on rural economies, potentially influencing agricultural output and employment metrics in the forthcoming fiscal cycles.

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