India to Launch VB-G RAM G Scheme, Expanding Rural Employment Guarantee to 125 Days
Govt to replace MGNREGA with new rural jobs scheme G RAM G, guarantees 125 days of work at near Rs 96,000 crore budget allocation
The Economic TimesImage: The Economic Times
The Indian government will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) from July 1, 2026. The new scheme guarantees 125 days of work per year and has a budget allocation of approximately ₹96,000 crore ($11.5 billion USD), aiming for a more productive rural economy.
- 01MGNREGA will be replaced by VB-G RAM G, offering 125 days of work annually.
- 02The scheme has a record budget allocation of ₹95,692.31 crore ($11.5 billion USD) for FY27.
- 03Existing job cards will remain valid during the transition to the new framework.
- 04Payments will be made weekly or within 15 days of work completion.
- 05The initiative aims to enhance rural infrastructure and productivity.
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In a significant overhaul of rural employment in India, the government announced the replacement of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), effective from July 1, 2026. This new scheme will increase the guaranteed workdays from 100 to 125 days annually for eligible rural households willing to engage in unskilled manual labor. The government has allocated a record ₹95,692.31 crore ($11.5 billion USD) for the program in the fiscal year 2027, marking the highest funding ever for a rural employment initiative. The total outlay, including contributions from state governments, is expected to exceed ₹1.51 lakh crore ($18.2 billion USD). The Ministry of Rural Development assured that the transition will be seamless, with existing job cards remaining valid and ongoing projects continuing without interruption. Payments to workers will be facilitated through Direct Benefit Transfer (DBT), ensuring timely compensation. The VB-G RAM G framework emphasizes rural infrastructure development and village-level productivity, positioning Gram Panchayats as key players in implementation.
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The new scheme aims to provide more job opportunities and enhance rural livelihoods, potentially benefiting millions of rural households in India.
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