After facing a massive cut in funding, the Hyderabad-based National Institute of Rural Development & Panchayati Raj (NIRD&PR) is now poised for a major financial boost, with the government proposing nearly Rs 1,000 crore to stabilise the institute, according to the Indian Express.
NIRD&PR set for Rs 1,000-Crore rescue after budget slash
Earlier this year, the Finance Ministry cut NIRD&PR’s yearly funding from Rs 73.68 crore to just Rs 1 Lakh. The drastic cut left the institute struggling to pay salaries, medical claims, and other benefits to its staff. Employees had earlier raised concerns about salary delays, unpaid medical claims, and lack of conversation with management following the funding cut.
Now, the Rural Development Ministry is urging the Union Cabinet to approve an infusion of Rs 992.26 crore. According to the Indian Express, the step ensures that the institute can continue its operations and then transform into a Centre of Excellence or a Deemed University, even after its “disengagement” from the Ministry, which means the government will no longer provide regular annual funding. This includes Rs 575 crore as an Endowment Fund and Rs 417.26 crore to meet pension liabilities.
About NIRD&PR
NIRD&PR, established in 1958, is the government’s apex institute for rural development training, research, and policy support. It conducts academic programs like the Diploma in Rural Development Management and Tribal Development Management.
Earlier in this year’s Union Budget, the Finance Ministry dramatically reduced funding for India’s only national institute dedicated to building capacity for gram panchayats and local self-governance. When the new financial year began on April 1, 2025, NIRD&PR was left with only Rs 1 lakh to pay salaries and pensions for its 800-odd employees. Apart from training, the institute also serves as a think tank for the Rural Development Ministry, working on policies and strategies for rural India.
Following the funding cut, NIRD&PR employees faced some major issues, including delayed salaries and benefits, non-payment of medical claims and education allowances, being asked to treat salaries as repayable loans and limited transparency and dialogues with the higher-ups.
In June, representatives of the NIRD&PR employees’ body and academic association met Rural Development Minister Shivraj Singh Chouhan in Hyderabad to discuss these issues and request intervention.
Five years ago, the Finance Ministry’s Department of Expenditure had recommended a gradual disengagement of NIRD&PR and suggested a 25% annual budget cut over three years. However, the Ministry did not implement these changes. The Standing Committee on Rural Development later requested the government to rethink this approach. Instead of cutting funding, the committee asked for” structural reforms, decentralised decision-making, and adequate budget support.” Commenting on the plan to disengage the NIRD&PR, the committee said: “The Committee, strongly feel that rather than disengagement, the need of the hour is to forge deeper strategic collaboration between MoRD and NIRD&PR through structural reforms, decentralised decision-making, adequate allocation of budgetary grant-in-aid and with greater autonomy and allow the institute to thrive and grow within the existing MoRD framework.”
Moving forward, after several rounds of discussions with the Prime Minister’s Office (PMO) and NITI Aayog, the government has now moved to secure nearly Rs 1,000 crore for NIRD&PR.
