India Replaces MGNREGA with VB-G RAM G Rural Employment Scheme
Effective July 1, 2026, India will replace the MGNREGA with the new VB-G RAM G Act, increasing guaranteed rural employment from 100 to 125 days annually. The scheme shifts funding responsibilities, requiring states to bear 40% of costs, and emphasizes infrastructure development through Gram Panchayats. While the government promises a seamless transition with valid existing job cards, opposition parties criticize the cost-sharing model and potential digital barriers for workers. This major policy overhaul aims to align rural development with the Viksit Bharat @2047 vision, significantly impacting India’s social protection landscape.
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VB-G RAM G Act to Replace MGNREGA in India from July 2026
The Indian government has notified that the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G Act 2025, will officially replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) starting July 1, 2026. This legislative shift marks the end of the two-decade-old MGNREGA scheme enacted by the previous UPA government. The new VB-G RAM G framework aims to provide a statutory guarantee of 125 days of wage employment per financial year to rural households volunteering for unskilled manual work. A significant structural change involves shifting 40% of the funding burden to state governments, altering the previous central sponsorship model. While the Union Ministry of Rural Development promotes this as a step toward empowerment and saturation, opposition parties have criticized key provisions, including the cost-sharing pattern, normative allocation methods, and the suspension of employment guarantees during peak agricultural seasons. Critics argue these changes impose fiscal stress on states already facing economic challenges. This development is highly relevant for civil service examinations, highlighting shifts in welfare schemes, federal fiscal relations, and rural employment policies in India.
The Indian ExpressIndia Replaces MGNREGA with New VB-G RAM G Act for Rural Employment
The Indian government has announced that the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G Act, 2025, will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) effective July 1, 2026. This new legislation aims to expand guaranteed wage employment from 100 to 125 days per year for rural households, aligning with the Viksit Bharat 2047 vision. The Act focuses on four key areas: water security, core rural infrastructure, livelihood-related infrastructure, and extreme weather mitigation. Works must now originate from village-level Viksit Gram Panchayat Plans. While the government promises a seamless transition, retaining existing job cards temporarily and prioritizing ongoing projects, opposition parties and labor activists express concern over the repeal of MGNREGA’s rights-based framework. They warn that increased digitization, including face-authentication attendance, may create barriers for vulnerable workers. Key provisions such as the 15-day employment guarantee, unemployment allowances, and direct benefit transfer for wages remain unchanged. Funding patterns vary by region, with higher central support for northeastern and Himalayan states. The shift marks a significant restructuring of India’s rural development and social protection landscape.
Economic TimesIndia to Replace MGNREGA with VB-G RAM G Act from July 1
The Indian government has announced that the new Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act will officially come into force on July 1, 2026, replacing the longstanding Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The Ministry of Rural Development issued notifications confirming the repeal of MGNREGA across all States and Union Territories. To ensure a smooth transition, the Ministry assured that ongoing works under MGNREGA as of June 30 would be carried over seamlessly to the new framework. Existing e-KYC verified job cards will remain valid until new 'gramin rozgar guarantee cards' are issued, and workers will not face employment denial due to pending verification processes. Registration for new applicants will continue at the gram panchayat level. The government describes gram panchayats as central to this rural transformation, aiming to boost employment, infrastructure development, and village self-reliance. Draft rules concerning wage payments, grievance redressal, and allocation norms are currently being prepared in consultation with state authorities and will soon be open for public consultation.
News Today: Breaking News, Top Headlines & Live Updates | The HinduIndia to Replace MGNREGA with VB-G RAM G Act from July 2026
The Indian Centre has officially notified the implementation of the Viksit Bharat–Guarantee for Employment and Livelihood Mission (Rural), known as the VB-G RAM G Act, which will replace the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) across the country starting July 1, 2026. This legislative overhaul aims to enhance rural employment and infrastructure development. The new framework guarantees 125 days of annual employment to rural households, an increase from the current 100 days under MGNREGA. Union Minister Shivraj Singh Chouhan emphasized that the transition will ensure no laborer is deprived of work, with existing provisions remaining operational until the switch. The government has allocated over ₹95,000 crore in the Union Budget, with total annual expenditure expected to exceed ₹1.51 trillion. The scheme expands its mandate to include large-scale infrastructure creation, such as water conservation projects, village roads, and disaster mitigation structures. Wages will be processed via Direct Benefit Transfer within three to fifteen days, with compensation for delays. Administrative expenditure ceilings have also been raised to 9% to strengthen implementation capacity, aligning with the vision of developed villages.
Home PageIndia to Replace MGNREGA with VB-G RAM G Rural Employment Scheme on July 1
The Indian government has officially notified that the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin), known as VB-G RAM G, will replace the longstanding Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) effective July 1, 2026. Enacted in December 2025, the new legislation aims to provide a statutory guarantee of 125 days of wage employment per financial year to rural households, an increase from the previous 100 days. However, the scheme introduces a significant shift in funding responsibility. Unlike MGNREGA, where the central government covered 100% of wage costs, VB-G RAM G operates as a centrally sponsored scheme with a cost-sharing model. The Centre will bear 60% of costs for most states and 90% for Northeastern and Himalayan regions, shifting 40% of the burden to state governments for the majority of the country. This change has drawn criticism from opposition parties regarding fiscal implications for states and provisions allowing pauses in employment during peak agriculture seasons. The Ministry of Rural Development issued the repeal notification for MGNREGA on May 11, 2026, marking the end of the two-decade-old program initiated by the UPA government.
The Indian ExpressIndia to Replace MGNREGA with VB-G RAM G Rural Employment Scheme from July 2026
The Indian Central Government has announced a major overhaul of its rural employment architecture, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a new framework called Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB–G RAM G, effective July 1, 2026. This transition aims to align with the Viksit Bharat @2047 vision, increasing the statutory employment guarantee from 100 to 125 days per year for eligible rural households. The government has allocated a record Rs 95,692.31 crore for the program in the Fiscal Year 2027 budget, with total outlays expected to exceed Rs 1.51 lakh crore including state contributions. Officials assured a seamless transition, stating that existing job cards will remain valid and ongoing projects will continue without interruption. The new scheme emphasizes rural infrastructure creation, livelihood enhancement, and village-level productivity, with Gram Panchayats playing a central role in implementation. Wage payments will continue via Direct Benefit Transfer, and provisions for delay compensation and unemployment allowances will be maintained. Draft rules regarding administrative procedures and grievance redressal are currently being prepared in consultation with states.
Economic Times