MGNREGA Work Demand Drops Amid Uncertainty Over New Rural Jobs Scheme
MGNREGA demand dips in April as fate of VB-G RAM G remains unclear
Business Standard
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In April 2026, demand for work under India's Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) fell by 35.3%, with only 13 million households seeking employment. This decline is attributed to uncertainty surrounding the new Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (VB-G RAM G) scheme, which has not yet been formally notified by any state.
- 01Demand for MGNREGA work decreased by 35.3% in April 2026 compared to the previous year.
- 02Only 13 million households sought employment under the scheme during this period.
- 03Uncertainty regarding the VB-G RAM G scheme is a primary factor for the decline.
- 04April typically sees strong demand due to available funds in panchayats.
- 05The Central government allocated ₹95,692 crore for the VB-G RAM G scheme in the FY27 budget.
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In April 2026, the demand for work under India's Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) saw a significant decline, with only 13 million households requesting employment, marking a 35.3% drop from the same month in the previous fiscal year. This unusual decrease is largely attributed to uncertainty regarding the new Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (VB-G RAM G) scheme, which has yet to be formally notified by any state. Typically, April witnesses robust demand for rural employment as local panchayats are well-funded. However, civil society groups have expressed concerns that the lack of clarity surrounding the future of these employment schemes has dampened demand. Preliminary data indicates that muster rolls, which record work demand, may still be incomplete as they close by the 7th of each month. The Central government has allocated ₹95,692 crore for the VB-G RAM G scheme and ₹30,000 crore for MGNREGA to address pending dues and support work during this transitional phase.
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The decline in MGNREGA demand may lead to increased unemployment in rural areas, affecting livelihoods and economic stability for many families dependent on these jobs.
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