States question VB-G RAM G financial burden, Pg1

Key Highlights:

• The Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G RAM G), a new rural employment program, came into effect on July 1, 2026, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
• Under VB-G RAM G, the guaranteed workdays for rural households have increased from 100 to 125 days per financial year.
• The funding pattern has shifted to a 60:40 Centre-State share for most states, a significant change from MGNREGA where the Centre bore 100% of the wage bill.
• States like Bihar, Madhya Pradesh, and Jharkhand have expressed concerns over the increased financial burden due to this revised funding model.
• Punjab, initially opposing the scheme, has now notified the VB-G RAM G Scheme, Punjab 2026, marking a policy reversal.

VBGRAMG.png

Detailed Insights:

• The VB-G RAM G Act, 2025, was passed by Parliament in December 2025 and received presidential assent on December 20, 2025.
• Unlike MGNREGA's demand-driven, open-ended budget, VB-G RAM G operates on a supply-driven, normative allocation model, where the Centre sets a spending ceiling.
• The new scheme aims to integrate employment generation with long-term rural development, focusing on durable asset creation and infrastructure.
• Work under VB-G RAM G is aligned with four thematic focus areas: water security, core rural infrastructure, livelihood-related infrastructure, and climate resilience.
• A mandatory 60-day pause during peak agricultural seasons is introduced under VB-G RAM G, which was not present in MGNREGA.
• The scheme emphasizes digital monitoring, biometric verification, geospatial tracking, and structured social audits for transparency.
• Punjab's notification of the scheme, despite earlier legislative opposition, highlights the pressure on states to align with the new central framework.

Key Concepts Involved:

• Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G RAM G): A new central legislation effective July 1, 2026, replacing MGNREGA, aiming for asset-based rural employment and development.
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): A 2005 law guaranteeing 100 days of wage employment to rural households, primarily focused on social safety net.
• Viksit Bharat 2047: The Government of India's vision to transform India into a developed nation by its 100th anniversary of independence in 2047, encompassing economic growth, social advancement, and good governance.