Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) to replace MGNREGA from July 1

The Union government has notified that the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-G RAM G] will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from July 1, repealing all existing rules and guidelines. The new scheme, passed without pre-legislative consultations, increases the statutory employment guarantee from 100 to 125 days annually. However, crucial details like objective parameters for deciding normative budgets and the 60:40 Centre-State expenditure ratio (compared to 100% Centre wage bill under MGNREGA) remain unclear. Concerns also exist regarding e-KYC completion for workers and a new blackout period clause, which could reduce workers' bargaining power.

Key Points

  • The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) will replace MGNREGA from July 1.
  • The new legislation increases the statutory employment guarantee from 100 to 125 days per financial year.
  • A key change is the shift from 100% Central funding for wages under MGNREGA to a 60:40 Centre-State expenditure ratio for most States.
  • Crucial details regarding the objective parameters and formula for deciding normative budgets for States remain unclear.
  • Concerns persist about the completion of e-KYC for workers and the introduction of a blackout period clause, potentially reducing workers' bargaining power.

Exam Facts

  • The new scheme, VB-G RAM G, will take effect from July 1.
  • It replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.
  • The employment guarantee is increased from 100 days to 125 days.
  • The expenditure ratio for wages will be 60:40 between the Centre and States (for most States).
  • Union Rural Development Minister Shivraj Singh Chouhan made the announcement.

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All current affairs of 12 May 2026