With panchayat elections in Uttar Pradesh due this year, the Yogi Adityanath government has proposed a sharp increase in funding for rural local bodies in this year’s state Budget. The government has earmarked about Rs 32,090 crore for Panchayati Raj schemes – a 67 per cent rise over the previous year’s allocations for the Panchayati Raj Department.
While grants to gram panchayats have more than doubled – from Rs 5,457.90 crore in 2025-26 to Rs 13,490.19 crore – fund allocations for block panchayats and district panchayats have also been significantly increased – from Rs 1,169.55 crore each to Rs 2,890.76 crore each.
Further, provision of Rs 350 crore has been made in the budget for making arrangements for the panchayat elections.
While the budgetary outlay for the capital and administrative expenditure has seen only a marginal increase – Rs 30 crore and Rs 50 crore, respectively – a major portion of the hike is directed towards direct financial assistance to the three tiers of Panchayati Raj institutions in the state.
“The enhanced allocation is aimed at strengthening grassroots governance and improving basic infrastructure like sanitation and service delivery in villages. It signals a major push towards rural development and local capacity building before the upcoming panchayat polls, which are due anytime this year,” said a senior official of the Panchayati Raj Department.
Spending under Central schemes such as Swachh Bharat Mission (Gramin) and the National Gram Swaraj Abhiyan has also been stepped up.
“With focus on sanitation and governance, an allocation of Rs 2,823 crore has been proposed for the Swachh Bharat Mission (Gramin) Phase II, which has been operational since 2020–21,” the Budget document read.
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Also, to bridge the rural digital divide, the government has proposed Rs 454 crore for setting up “digital libraries” at the gram panchayat and ward levels, providing students and youth access to modern learning facilities within villages.
The government has also proposed to boost sports and community infrastructure in the villages, and has laid a provision of Rs 130 crore for the construction of rural stadiums and open gyms in villages.
To strengthen local governance infrastructure in panchayats, about Rs 57 crore has been allocated for the construction of 1,000 multipurpose panchayat buildings.
Another Rs 100 crore has been proposed for building Panchayat Utsav Bhawans or Baraat Ghars in rural areas in every Assembly constituency.
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“The overall increase in the budgetary allocation reflects the government’s strategy to equip gram panchayats with better resources, infrastructure, and institutional capacity, with the broader objective of developing villages into self-reliant units,” said an official.
The significant hike in allocations comes at a politically important time, with panchayat elections expected later this year. The government’s move is seen as an administrative as well as electoral push to strengthen rural governance.
Panchayat polls are due in the state between April and July. But before that, the state government has to finalise the formation of an OBC commission so that reservation of seats can be completed accordingly.
Recently, during a hearing of a PIL for the formation of the OBC commission in view of the Panchayati Raj polls, the UP government had informed the court that it “is in the process of constituting the OBC Commission for the purposes of ensuing Panchayat elections as per the law”.
Maulshree Seth is an Assistant Editor with The Indian Express, based in Lucknow. With over 15 years of experience in mainstream journalism, she has built a formidable reputation for her on-ground reporting across Uttar Pradesh. Her expertise spans a wide array of critical beats, including state politics, governance, the judiciary, and rural development.
Authoritativeness Maulshree’s work is characterized by depth and historical context. Her coverage of high-stakes state elections and landmark judicial rulings has established her as an authoritative voice on the intersection of law and politics in Northern India. She is frequently recognized for her ability to gain access to primary sources and for her nuanced understanding of the socio-economic factors that drive the world's most populous sub-national entity.
Trustworthiness & Ethical Journalism Her reporting is rooted in rigorous fact-checking and a steadfast dedication to neutral, unbiased storytelling. By prioritizing field-based verification—often traveling to the most remote corners of the state—she ensures that her readers receive a truthful and comprehensive view of events. ... Read More
