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The rural development ministry has an outlay of ₹1.78 lakh crore for this financial year, up 3.8% from a year before.
While the allocation for the rural job guarantee scheme may remain unchanged or see a marginal rise in 2025-26 against the budgeted ₹86,000 crore for this fiscal, rural housing and roads schemes are likely to see a sharper increase in outlays, according to the people. The government had allocated ₹54,500 crore for the Pradhan Mantri Awas Yojana-Gramin (PMAY-G) and ₹16,100 crore for the Pradhan Mantri Gram Sadak Yojana (PMGSY) for this fiscal.
Higher government expenditure is expected to boost «resilient rural demand» and support economic growth when urban consumption is yet to turn the corner, said one of the persons, who did not wish to be identified.
Schemes such as those for rural housing and roads have a high multiplier effect, while the Mahatma Gandhi National Rural Employment Guarantee Scheme adds to the income of unskilled rural workers, according to experts. Under the rural jobs scheme, the government has so far released ₹81,278 crore of the budgeted ₹86,000 crore for this fiscal.
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