The future of a national institution tasked with training officials and public representatives in rural development has come under question as funds allocation to it has nosedived from ₹73.68 crore in the revised estimate of 2024-25 to just ₹1 lakh in the budget of 2025-26.

The National Institute of Rural Development and Panchayati Raj (NIRDPR), under the rural development ministry, conducts training for capacity building of officials and elected members of gram panchayats and zilla parishads on bookkeeping and modalities of implementing rural development schemes. It also handholds the State Institutes for Rural Development (SIRDs) and district extension training centres.

The Hyderabad-based NIRDPR, which has nearly 100 faculty members, offers a regular postgraduate diploma in rural development management and three courses in the distance mode.

The employees' association of the NIRDPR has issued a statement expressing shock and concern about the future of its 222 staffers. "The decision has shocked and disheartened the 222 employees and their families who now face an uncertain future. What makes the situation more distressing is that the disengagement decision was taken without consulting the employees, including 54 from the SC, seven from the ST and 56 from the OBC categories.... The unexpected move raises critical concerns about the government's commitment to rural development and decentralisation," said the statement.

Social activist Nikhil Dey said the allocation suggested that the government seemed to have decided to close down the NIRDPR. “The allocation of ₹1 lakh for the NIRDPR gives an impression that the institute will be closed down. Apart from training officials and public representatives, it also conducts studies to evaluate schemes. It will be a big loss to the nation if it is closed down,” Dey said.

N.K. Sahu, a former economic adviser to the rural development ministry, said the decline in allocation may lead to a collapse of the manpower training ecosystem. “The entire rural development ecosystem of the training of manpower will break down. The government needs to have a relook at the allocation,” Sahu said.

He said every institution had its shortcomings and the government must take steps to revamp them, but such an abrupt and sharp reduction in funds allocation may not be the correct way forward.

An official said the government had asked the Arun Jaitley Institute of Financial Management to evaluate the NIRDPR and SIRDs. “The government’s position is that it has been nurturing autonomous institutions for the last 70 years and it cannot be expected to support them further. They have to raise funds,” the official said. This could leave the NIRDPR with no option but to hike fees.