New VB-RAM G Act Replaces MGNREGA with ₹95,000 Crore Allocation for Rural Jobs
The Union Budget 2026 introduced the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-RAM G) Act, 2025, which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. The new scheme has been allocated ₹95,692.31 crore for the 2026-27 fiscal year. Additionally, ₹30,000 crore has been set aside to clear liabilities from the previous year's MGNREGS. The government aims to provide 125 workdays to all enrolled workers. However, experts suggest that an outlay of ₹2.3 lakh crore would be necessary to fully meet this commitment for all 8.65 crore active job card holders.
Key Points
- The VB-RAM G Act, 2025, replaces the MGNREGA, 2005, as the primary rural job guarantee.
- Total allocation for the new scheme is approximately ₹95,692 crore for FY27.
- The government target is to provide 125 workdays per year to all enrolled workers.
- Panchayats will directly receive over ₹55,900 crore as per 16th Finance Commission recommendations.
Exam Facts
- New Act: VB-RAM G Act, 2025.
- Allocation: ₹95,692.31 crore.
- Target workdays: 125.
- Active job card holders: 8.65 crore.
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