Union Budget allocations for Rural Development increased over 211 per cent during the last decade. These figures indicate a sustained fiscal commitment to strengthening local institutional capacity, rural infrastructure and livelihoods.
Institutions
- From Govt led Welfare Delivery model to Decentralised Partnerships: Eg. Jal Jeevan Mission’s participatory mechanisms through Panchayats and SHGs, achieving near-universal rural tap water coverage (99.6%).
- Community led Institutions are being leveraged for last mile delivery: Eg. Model Youth Gram Sabha to familiarise students with grassroots governance.
- Women-Led SHGs under DAY-National Rural Livelihoods Mission
- Strengthening local institutions: Direct Fiscal Transfers to panchayat increased by ~85% under 16th Finance commission.
- Eg. Revamped Rashtriya Gram Swaraj Abhiyan to enhance institutional capacity and e-governance of these bodies

Investment
- Rural infrastructure: Housing and Connectivity under PM Gram Sadak Yojna and PM Awas Yojna Gramin has seen significance jump in allocations.
Inclusion
- Economic Inclusion: Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 guarantees 125 days of employment, linked to asset creation.
- Market Inclusion: To support the Lakhpati Didi initiative, budget proposes SHE-Marts—community-owned retail outlets to help women move from subsistence to sustainable enterprise.
- Digital Rights: Schemes like SVAMITVA (drone mapping) and Namo Drone Didi ensure rural citizens have property rights and access to the digital economy.