In its first month, VB-G RAM G sees almost 50% y-o-y dip in rural jobs, Pg3

Key Highlights:

• Rural employment generation under the new Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM G) scheme saw a 49.94% year-on-year decline in July 2026.
• Only 7.67 crore person-days were generated in July 2026, compared to 15.33 crore person-days under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in July 2025.
• The number of households availing the scheme also fell by 51.45% to 68.94 lakh in July 2026, from 1.42 crore in the same month last year.
• The decline follows the transition from MGNREGS to VB-GRAM G on July 1, 2026, with the new VB-GRAM G Act, 2025 replacing the previous legislation.
• The VB-GRAM G scheme guarantees 125 days of wage employment annually, an increase from the 100 days offered by MGNREGS.

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Detailed Insights:

• The significant drop in employment generation under VB-GRAM G is the lowest in the last five years for both person-days and households.
• This decline is particularly concerning given the erratic monsoon, which has led to deficit rainfall in 50% of the country's districts and a 26.50% reduction in Kharif crop area coverage.
• The Ministry of Rural Development stated that around 9 crore person-days were generated in July and that over 98% of rural households seeking employment were offered work.
• The government has allocated a record budget estimate of ₹98,692 crore for FY 2026-27 for the new scheme, emphasizing a smooth and technology-enabled transition.
• The VB-GRAM G Act, 2025 includes a provision for an additional 60 days of employment during peak agricultural seasons like sowing and harvesting.
• Women's participation in the new scheme has been substantial, contributing approximately 63% of the total person-days generated, exceeding the statutory one-third requirement.

Key Concepts Involved:

• Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM G): A new Indian social welfare legislation implemented from July 1, 2026, guaranteeing 125 days of wage employment to rural households.
• Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS): A social welfare program enacted in 2005, guaranteeing 100 days of wage employment to rural households for unskilled manual work.
• Person-day: A unit of measurement representing the amount of work done by one person in one working day.
• Kharif crop: Crops sown in early summer during the monsoon season and harvested in autumn, such as rice, maize, and cotton.