Government to Launch VB-G RAM G Scheme Replacing MGNREGA on July 1, 2026

The Centre will introduce the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-GRAM, from July 1, 2026, as per PTI reports.  

The programme will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which has been in operation since 2005. 

Implementation Process Begins Ahead of July Rollout 

The Ministry of Rural Development briefed the Parliamentary Standing Committee on Rural Development and Panchayati Raj on the rollout process. The meeting was chaired by Congress MP Saptagiri Ulaka. 

Officials informed the panel that 25 states have already allocated funds required for implementation of the scheme. Administrative preparations linked to the transition are also underway. 

Employment Limit Raised 

Under the new framework, rural households will be eligible for 125 days of wage employment in a financial year. MGNREGA currently guarantees 100 days of work for adult members willing to undertake unskilled manual labour. 

The Centre has estimated the annual requirement for wages, material, and administrative expenses at ₹1.51 lakh crore. Of this, the Centre’s estimated share stands at ₹95,692.31 crore. 

The funding pattern has been fixed at 60:40 between the Centre and states. Northeastern and Himalayan states will receive support under a 90:10 formula, while Union Territories without legislatures will continue to receive full central funding. 

New Job Cards Planned 

Workers under the programme will be issued smart job cards with face-recognition features. Existing MGNREGA cards will remain temporarily valid for workers who have completed e-KYC formalities. 

The government said the scheme will focus on water security projects, rural infrastructure, livelihood-related assets, and works linked to extreme weather conditions. 

The programme also introduces ‘Viksit Gram Panchayat Plans’, under which village-level development plans will be prepared by Gram Panchayats and approved by Gram Sabhas before projects are taken up. 

Transition Process 

According to the government, ongoing works under MGNREGA will continue during the transition period. Incomplete public assets and existing projects will be shifted to the new framework in phases. 

The MGNREGA law will formally stand repealed from July 1, 2026, when the VB-GRAM framework comes fully into effect across states. 

Read More: Russia Continues Deliveries of S-400 To India Under $5.43 Billion Deal! 

Conclusion  

VB-GRAM will introduce revised funding structures, new job cards and village-level planning mechanisms as part of the Centre’s rural employment programme from July 1. 

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