A Parliamentary Standing Committee chaired by Charanjit Singh Channi has asked the Ministry of Cooperation to ensure effective utilisation of its increased budget allocation for the financial year 2026–27.
In its report on the Demands for Grants, the Committee noted that the Ministry had sought Rs 1,370.06 crore, but was allocated Rs 1,744.74 crore, accounting for about 0.02% of the total outlay of the Government of India.
The allocation is significantly higher than the Rs 1,186.29 crore provided in the Budget Estimate for 2025–26 and almost double the Rs 981.31 crore allocated in the Revised Estimate for the same year.
The panel observed that the reduction in the Revised Estimate for 2025–26 was largely due to lower fund utilisation under the centrally sponsored scheme for computerisation of Primary Agricultural Credit Societies (PACS). The delay occurred after the scheme was shifted to the SNA SPARSH model in the second quarter of the financial year, requiring states and Union Territories to adjust to the new system for fund release.
As a result, several states could not raise their fund requirements in time. The Committee has therefore recommended that the Ministry focus on optimising the utilisation of the higher allocation in 2026–27 to strengthen cooperative sector initiatives.