Marking a massive shift in rural governance, the new VB-G RAM G Act officially replaces MGNREGA this July with a 125-day employment guarantee and a new top-down funding matrix.

The Ministry of Rural Development has released the draft rules for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G), which officially replaces MGNREGA on July 1.

Key Architectural Changes

• Employment Expansion: Guaranteed wage employment days scale up from 100 to 125 days.
• Agricultural Harmonization: A mandatory 60-day pause is introduced during seasonal sowing and harvesting to protect farm labour availability.
• Fiscal Devolution: The model shifts from a bottom-up state budget to a top-down mechanism where the Centre determines allocations using the Sixteenth Finance Commission's horizontal devolution formula.
• Funding Realignment: Unlike MGNREGS where the Centre covered 100% of the wage bill, VB-G RAM G transfers a significant fiscal burden to states, making them liable for any expenditure exceeding the normative ceiling.

Macro-Fiscal Implications

The Union government has earmarked Rs 95,692.31 crore for FY 2026-27. The new allocation matrix alters state funding shares:

• Gainers: Uttar Pradesh, Gujarat, Madhya Pradesh, Assam, Haryana, Punjab, and Bihar will see increased allocations.
• Losers: Tamil Nadu, Andhra Pradesh, Rajasthan, and Maharashtra face lower funding caps compared to FY 2025–26.

To prevent ground-level disruption, existing MGNREGS job cards remain valid after e-KYC verification until new Gramin Rozgar Guarantee Cards are rolled out. All wage and unemployment payments will continue strictly through Direct Benefit Transfer (DBT).

Try this :

Consider the following statements regarding the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G):

1. Guaranteed wage employment has been increased from 100 days to 125 days.
2. The Centre will continue to bear 100% of the wage bill as under MGNREGS.
3. A mandatory pause during sowing and harvesting seasons has been introduced.
4. Existing MGNREGS job cards will remain valid after e-KYC verification until new cards are issued.

Which of the statements given above are correct?
A. 1 and 2 only
B. 2, 3 and 4 only
C. 1, 2 and 3 only
D. 1, 3 and 4 only