{"id":105464,"date":"2026-05-28T11:15:37","date_gmt":"2026-05-28T05:45:37","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=105464"},"modified":"2026-05-28T11:15:37","modified_gmt":"2026-05-28T05:45:37","slug":"vb-g-ram-g-mgnregs-rural-employment-scheme-changes","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/vb-g-ram-g-mgnregs-rural-employment-scheme-changes\/","title":{"rendered":"VB-G RAM G to Replace MGNREGS: Key Changes in Rural Employment Scheme"},"content":{"rendered":"<h2><b>VB-G RAM G Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 \u2014 popularly known as VB-G RAM G \u2014 is set to come into force from July 1, 2026, replacing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Ministry of Rural Development had recently released eight draft rules governing the new scheme&#8217;s implementation. Public objections and suggestions have been invited within a month, after which the rules will be formally notified.<\/span><\/li>\n<\/ul>\n<h2><b>What is MGNREGA \u2014 Brief Background<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">MGNREGA (enacted 2005) was India&#8217;s flagship rural employment guarantee scheme \u2014 providing <\/span><b>100 days<\/b><span style=\"font-weight: 400;\"> of guaranteed wage employment per year to rural households willing to do <\/span><b>unskilled manual work<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It benefited over five crore rural families in 2025-26 and was entirely <\/span><b>Centre-funded<\/b><span style=\"font-weight: 400;\"> for wages.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Key Features of VB-G RAM G<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">VB-G RAM G now replaces MGNREGA with significant structural changes.<\/span><\/li>\n<\/ul>\n<h3><b>Increased Work Days \u2014 With a Seasonal Pause<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The guaranteed employment has been increased from 100 to 125 days per year \u2014 a 25% increase in the employment guarantee.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, a 60-day pause during peak agricultural sowing and harvesting seasons has been built in \u2014 to ensure adequate availability of farm labour during critical agricultural periods.<\/span><\/li>\n<\/ul>\n<h3><b>Shift in Funding \u2014 States Bear More Burden<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This is the most significant and controversial change. Under MGNREGA, the Centre bore 100% of the wage bill.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under VB-G RAM G, <\/span><span style=\"font-weight: 400;\">states must now bear 40% of the funding burden<\/span><span style=\"font-weight: 400;\"> \u2014 a major fiscal shift that will strain state exchequers, particularly those with high rural employment demand.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The only exceptions are northeastern and Himalayan states and UTs with a legislature (where the Centre bears 90%) and UTs without legislature (where the Centre bears 100%).<\/span><\/li>\n<\/ul>\n<h3><b>Top-Down Allocation \u2014 Centre Determines Devolutions<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">VB-G RAM G reverses the <\/span><span style=\"font-weight: 400;\">MGNREGA model where Central allocations were based on state-submitted labour budgets (demand-driven)<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Now, the <\/span><b>Centre determines<\/b><span style=\"font-weight: 400;\"> the normative allocation to each state \u2014 making the resource allocation process top-down rather than demand-driven.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This gives the Centre greater control over fund flows but reduces states&#8217; ability to respond to fluctuating local demand.<\/span><\/li>\n<\/ul>\n<h3><b>16th Finance Commission Formula for Allocation<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Centre will use the Sixteenth Finance Commission&#8217;s horizontal devolution formula to determine normative allocations to states. This will result in winners and losers among states:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">States likely to receive lower allocations \u2014 Tamil Nadu, Andhra Pradesh, Rajasthan, Maharashtra.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">States likely to receive higher allocations \u2014 Uttar Pradesh, Gujarat, Madhya Pradesh, Assam, Haryana, Punjab, Bihar.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Performance-Based Withheld Allocation<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A new provision allows the Centre to keep aside a portion of the normative allocation and distribute it among states based on performance parameters \u2014 including timely payment of wages, compliance with social audit requirements, percentage of work completion in a financial year, and other Centre-specified indicators.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The proportion to be withheld has not yet been decided. This provision takes effect from the next financial year.<\/span><\/li>\n<\/ul>\n<h3><b>States Bear Excess Expenditure<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">If a state&#8217;s demand for employment exceeds its normative allocation and expenditure goes beyond the Centre&#8217;s share, the state must bear all additional expenditure \u2014 creating a significant fiscal risk for high-demand states.<\/span><\/li>\n<\/ul>\n<h3><b>DBT Wage Payments<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">All wage and unemployment allowance payments under VB-G RAM G will be made through Direct Benefit Transfer (DBT) into bank or post office accounts \u2014 improving transparency and reducing leakages.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, the wage rate under VB-G RAM G is yet to be declared by the Union government.<\/span><\/li>\n<\/ul>\n<h2><b>What Happens to Existing MGNREGS Workers<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The existing <\/span><b>MGNREGS job cards<\/b><span style=\"font-weight: 400;\"> \u2014 once renewed and verified through <\/span><b>e-KYC<\/b><span style=\"font-weight: 400;\"> \u2014 will remain valid for seeking employment under VB-G RAM G.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This arrangement continues until state governments issue <\/span><b>Gramin Rozgar Guarantee Cards<\/b><span style=\"font-weight: 400;\"> under the new law. No worker will be left without access to work during the transition period.<\/span><\/li>\n<\/ul>\n<h2><b>The Eight Draft Rules Released<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Ministry has released eight draft rules covering all key aspects of the new scheme:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">National Level Steering Committee Rules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Grievance Redressal Rules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Administrative Expenses Rules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Transitional Provisions under VB-G RAM G Rules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Objective Parameters for Normative Allocation Rules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Central Gramin Rozgar Guarantee Council Rules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Manner of Payment of Wages and Unemployment Allowance Rules<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Manner and Procedure of Expenditure incurred by States in excess of Normative Allocation Rules<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Union government has allocated <\/span><b>\u20b995,692.31 crore<\/b><span style=\"font-weight: 400;\"> for the VB-G RAM G scheme for 2026-27.<\/span><\/li>\n<\/ul>\n<h2><b>Key Concerns and Implications<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>For States<\/b><span style=\"font-weight: 400;\"> \u2014 The shift of 40% wage burden to states is a major fiscal challenge, particularly for high-demand states like Rajasthan, Andhra Pradesh, and Tamil Nadu \u2014 which may also receive lower allocations under the new formula. States with weak fiscal positions may struggle to fund demand surges.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>For Workers<\/b><span style=\"font-weight: 400;\"> \u2014 The 25 additional days of guaranteed work is positive. However, the 60-day agricultural pause and the yet-to-be-declared wage rate create uncertainty. The performance-based withheld allocation could also indirectly affect workers if states under-invest in compliance.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>For Centre-State Relations<\/b><span style=\"font-weight: 400;\"> \u2014 The shift from demand-driven to top-down allocation and the imposition of performance conditions on fund release represents a significant centralisation of control over a flagship rural welfare programme \u2014 raising federalism concerns.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/vb-g-ram-g-act-rules-mgnrega-replacement-10710787\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>VB-G RAM G to Replace MGNREGS marks a major shift in rural employment policy, changing job guarantees, implementation rules, and welfare delivery mechanisms.<\/p>\n","protected":false},"author":18,"featured_media":105488,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,22,59,7788],"class_list":{"0":"post-105464","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-upsc-current-affairs","10":"tag-upsc-mains-current-affairs-tag","11":"tag-vb-g-ram-g","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/105464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=105464"}],"version-history":[{"count":6,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/105464\/revisions"}],"predecessor-version":[{"id":105477,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/105464\/revisions\/105477"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/105488"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=105464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=105464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=105464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}