New VB-G RAM G Act to Replace MGNREGA, Enhancing Rural Employment from July 2026
VB-G RAM G replacing MGNREGA to come into force across India from July 1
Business Standard
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The Indian government has announced the Viksit Bharat–Guarantee for Employment and Livelihood Mission (Rural) Act, set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from July 1, 2026. The new law guarantees 125 days of employment annually for rural households, improving upon the previous 100 days under MGNREGA.
- 01The VB-G RAM G Act will replace MGNREGA starting July 1, 2026.
- 02The new act guarantees 125 days of employment annually to rural households.
- 03Over ₹95,000 crore (approximately $11.5 billion USD) has been allocated for the program.
- 04The act aims to create rural infrastructure alongside providing wage employment.
- 05Payments to workers will be processed within three days using direct benefit transfer.
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The Indian government has officially notified the implementation of the Viksit Bharat–Guarantee for Employment and Livelihood Mission (Rural) Act, or VB-G RAM G Act, which will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from July 1, 2026. This new legislation aims to enhance rural employment generation and infrastructure development, providing 125 days of guaranteed employment annually to rural households, an increase from the current 100 days under MGNREGA. Union Agriculture and Rural Development Minister Shivraj Singh Chouhan emphasized that the new framework will offer expanded livelihood opportunities and strengthen rural infrastructure. The government has allocated over ₹95,000 crore (approximately $11.5 billion USD) for the program, with total annual expenditures expected to exceed ₹1.51 trillion (approximately $18.3 billion USD). The initiative will support various projects, including water conservation, village roads, and disaster mitigation infrastructure. Payments to workers will be facilitated through the direct benefit transfer (DBT) mechanism, ensuring timely compensation. The transition will ensure that no laborer is deprived of work, maintaining existing provisions under MGNREGA until the new framework is fully operational.
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The VB-G RAM G Act is expected to significantly improve employment opportunities for rural households, ensuring more stability and income for families in rural areas.
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