New Delhi, Feb. 1 -- The Union Budget 2026-27 gave a massive spending boost to the rural economy, thanks to a sharp increase in the allocations for the government's flagship jobs scheme-Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The push comes as the Centre begins transitioning away from MGNREGA to the revamped scheme.

Since the scheme is in a transitory phase, the budget provides funding for both the existing MGNREGA and its proposed successor, the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), or the G-RAM G Act, signalling a phased shift rather than an abrupt overhaul.

While MGNREGA has been allocated Rs.30,000 crore, its lowest allocation in many years, the new G-RAM G scheme has received Rs...