VB-G RAM G Act Replaces MGNREGA, Implementation To Take Effect From July 1

The Union Ministry of Rural Development has officially notified the rollout of the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin), known as VB-G RAM G. The implementation of it will come into force from July 1, 2026, replacing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005.

As the notification has been issued, there is still time to implement the Act. The framework has been notified; however, the rules regarding it are under formulation stage after consultations with the states.  During this interim period, all provisions of MGNREGA will remain enforced, as per the government statement, and the pending work under MGNREGA will be completed before the implementation of the VB-G RAM G Act, 2025.  

The Act 2025 guarantees a minimum of 125 days of wage employment per financial year, compared to the 100-day standard under the MGNREGA. As per the government statement, the initiative would provide work in rural infrastructure development, roads, schools, bridges, culverts, anganwadi buildings, and water conservation. Further, construction of walls in the riverside villages or waterlogged areas, working sheds for self-help groups (SHGs) members and farmer producer organisations (FPOs) will also be taken as part of the scheme.

Under the new Act, one adult member from every rural household who volunteers for unskilled manual work will be entitled to 125 days of guaranteed wage payment. The employment will be provided within the prescribed timeframe, and if not provided, such workers will be eligible for an unemployment allowance as per the Act. The wage will be directly transferred to the workers’ bank account of post office accounts weekly.    

After the closure of the muster roll, it will be paid within 15 days, and in case of delay, compensation will be paid for the delay.

In addition to increasing the number of guaranteed work days, the initiative will have a different funding structure. While the central government was responsible for 100 per cent of the MGNREGA bill, under VB-G RAM G, the state will be required to share the financial burden. For most states, it would be 60:40 between the central government and states, respectively.  

The central government has allocated over Rs 95,000 crore in the budget to the scheme, and the states have also made provisions in their budget towards the scheme and to ensure employment for the people. The combined allocation to VB-G RAM G, according to the government, will be over Rs 1,51,000 crore.