Centre Releases ₹25,863 Crore for VB-G-RAM-G as New Rural Jobs Scheme Replaces MGNREGA
Updated
Updated · Mint · Jul 5
Centre Releases ₹25,863 Crore for VB-G-RAM-G as New Rural Jobs Scheme Replaces MGNREGA
3 articles · Updated · Mint · Jul 5
Summary
₹25,863 crore has been released to states as the first instalment for VB-G-RAM-G, the rural employment programme that replaced MGNREGA on July 1.
The Centre said the funding is meant to keep enough liquidity for wage payments within 15 days, while asking states to send their matching share on time.
Shivraj Singh Chouhan said the nationwide switch was completed in a single day without technical or operational disruptions, and work has already started in many gram panchayats, employing lakhs of rural workers.
Wage terms under the new scheme are richer: the national average notified wage has risen to ₹327.4 a day from ₹298.8, no state rate is below ₹300, and the guarantee has increased to 125 days from 100.
The rollout is still uneven in some places, with Odisha and West Bengal told to cover remaining gram panchayats, Jharkhand asked to notify the scheme, and pending RBI-account formalities flagged for quick completion.
With states now paying 40%, can the new job scheme deliver its promised wage and work-day hikes nationwide?
Has India's legal right to work been replaced by a target-driven development program with a new name?
Will mandatory face-authentication lock out India's most vulnerable workers from their guaranteed employment?
India's VB-G-RAM-G Act: Overhauling Rural Employment Guarantee for 2026–27 with ₹95,692 Crore Allocation
Overview
India has launched the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) on July 1, 2026, following the President’s assent to the new Act. This marks a major shift from the earlier MGNREGA, aiming to reshape rural employment by aligning it with the national vision of Viksit Bharat 2047. The program is designed to improve how rural jobs are guaranteed, financed, and managed, focusing on stronger accountability and better outcomes for rural communities. This transformation reflects India’s commitment to sustainable rural development and economic growth.