The Ministry was allocated Rs 80,194 crore in 2013-14 fiscal.
In the last fiscal, there was a massive cut in budgetary allocations for the Ministry, which had forced Rural Development Minister Jairam Ramesh to shot off a letter to Chidambaram, expressing displeasure over the decision.
The Finance Ministry had proposed Rs 15,000 crore funds cut in rural development schemes in the revised budget estimates (RE).
He said that he has provided an amount equal to or higher than in the Budget Estimate of 2013-14 and irrespective of the revised estimates for the year.
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The nearly Rs 2000 crore more allocation is expected to give a boost to implement the Ministry's ambitious programmes like MNREGA, National Rural Livelihood Mission and skill development programmes in Jammu and Kashmir and tribal areas.
The rural job scheme envisages creation of durable and productive assets which would contribute greatly to the economic and ecological development of the rural areas.