New Rural Job Guarantee Program Set to Replace MGNREGA in India
End of an era: VB–G RAM G to replace MGNREGA on July 1 as Centre notifies rollout
The Indian Express
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The Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act 2025 will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) effective July 1, 2026. The new program promises 125 days of wage employment per year for rural households, with a revised funding structure that has drawn criticism from opposition parties.
- 01The VB-G RAM G Act 2025 will repeal MGNREGA and take effect on July 1, 2026.
- 02The new scheme guarantees 125 days of wage employment annually for rural households.
- 03Funding will be shared between the central and state governments, differing from MGNREGA's full central funding.
- 04Criticism has arisen regarding the new funding structure and employment guarantees during peak agricultural seasons.
- 05The act aims to empower rural communities and promote sustainable growth.
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The Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act 2025, aimed at repealing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005, will come into effect on July 1, 2026. The Union Ministry of Rural Development announced this transition, marking the end of MGNREGA, which has been in place for over two decades. The new act guarantees 125 days of wage employment annually for rural households whose adult members seek unskilled manual work. Unlike MGNREGA, where the central government covered the entire wage bill, the VB-G RAM G will operate on a 60-40 funding ratio between the central and state governments, with different ratios for specific regions. This shift has drawn criticism from opposition parties, particularly concerning the funding model and the suspension of employment guarantees during peak agricultural seasons. The government asserts that the new act is designed to enhance empowerment and growth in rural areas.
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The new program may affect rural households relying on MGNREGA for employment, as the funding structure changes and guarantees may be limited during peak agricultural seasons.
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More about Ministry of Rural Development
India Introduces New Rural Employment Law, VB-GRAMG, to Replace MGNREGA
Hindustan Times • May 11, 2026
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The Economic Times • May 11, 2026
New Job Guarantee Scheme Guidelines Expected Soon from Indian Ministry of Rural Development
Hindustan Times • May 8, 2026
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