VB-G RAM G rules: What changes as scheme set to replace NREGS, Pg17

Key Highlights:

• The Vikshit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G) will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) starting July 1.
• The new rules increase guaranteed wage employment days and shift a significant portion of funding to states.
• The Union government has released draft rules covering wage payment, unemployment allowances, and state allocations.
• An allocation of Rs 95,692.31 crore has been made for the VB-G RAM G scheme for the financial year 2026-27.

Detailed Insights:

• Existing MGNREGS job cards will remain valid under the VB-G RAM G Act after renewal and e-KYC verification, until state governments issue new Gramin Rozgar Guarantee Cards.
• Wage and unemployment allowance payments will be made through Direct Benefit Transfer (DBT) to bank or post office accounts.
• The Sixteenth Finance Commission’s horizontal devolution recommendations will determine the normative allocation to states, potentially affecting fund distribution.
• States may face increased financial burden as they will have to bear any additional expenditure exceeding the normative allocation.
• A portion of the normative allocation may be kept aside by the Union government based on parameters like timely wage payment and compliance with social audit requirements.

Key Concepts Involved:

• MGNREGA: A social security scheme guaranteeing 100 days of wage employment to rural households.
• Direct Benefit Transfer (DBT): A mechanism to transfer subsidies and benefits directly to beneficiaries' bank accounts.
• Normative Allocation: The standard or expected allocation of funds to states based on predefined criteria.