On May 11, 2026, the Government of India officially notified the commencement of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB–G RAM G] Act, 2025. Effective from July 1, 2026, this legislation will repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.
The new law expands the statutory rural employment guarantee from 100 days to 125 days per household annually and is backed by a record ₹95,692.31 crore allocation for FY 2026–27. Including state contributions, the total estimated programme outlay is expected to exceed ₹1.51 lakh crore.
The government says the new framework is intended to strengthen rural livelihoods while shifting the programme toward more productivity-oriented and durable rural asset creation under the broader Viksit Bharat @2047 vision.
The transition framework retains several protections from MGNREGA, including unemployment allowance, compensation for delayed wage payments, and Direct Benefit Transfer (DBT)-based wage disbursal. Existing MGNREGA job cards linked through e-KYC will remain valid until new Gramin Rozgar Guarantee Cards are issued, and all ongoing projects will continue without interruption.
The Act also introduces a revised administrative framework covering fund allocation norms, grievance redressal systems, and the creation of a Central Gramin Rozgar Guarantee Council for oversight and coordination.
Key Provisions of VB–G RAM G vs. MGNREGA
Employment Guarantee: Increased to 125 days (from 100 days under MGNREGA).
Budgetary Outlay: Central allocation of ₹95,692.31 crore; total estimated programme outlay exceeds ₹1.51 lakh crore with state contributions.
Transition Period: MGNREGA remains active until June 30, 2026; all ongoing works will be saved and carried over.
Wage Payment: Mandatory weekly or fortnightly payments via DBT; delay compensation remains a statutory right.
Job Card Validity: Existing MGNREGA cards are valid; no worker will be denied employment due to pending e-KYC.
Administrative Oversight: New rules are being drafted for normative allocation, grievance redressal, and a Central Gramin Rozgar Guarantee Council.
What is the "VB–G RAM G" Act?
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB–G RAM G] Act, 2025, is a statutory framework that guarantees 125 days of unskilled manual work to rural households. It replaces MGNREGA with the objective of creating more durable rural infrastructure and enhancing livelihood security. Unlike its predecessor, VB–G RAM G is positioned as an "integrated and future-ready" mission, emphasizing not just immediate relief but long-term rural transformation and productivity, making Gram Panchayats the central pillar of village-level development.
Policy Relevance
Rural Incomes: The 25% increase in guaranteed work days (from 100 to 125) acts as a significant fiscal stimulus for the rural economy, directly countering underemployment.
Administrative Continuity: By saving ongoing MGNREGA works and validating existing Job Cards, the government prevents a "policy vacuum" that could distress vulnerable workers during the transition.
Rural Infrastructure: The historic allocation of over ₹95,000 crore provides fresh momentum for building climate-resilient and high-productivity assets in villages.
Decentralised Governance: The Act reinforces the role of Gram Panchayats in planning and execution, furthering the constitutional goal of local self-governance.
Financial Accountability: The introduction of new rules for "Normative Allocation" and "Administrative Expenditure" aims to reduce leakages and ensure data-driven fund distribution among states.
Relevant Question for Policy Stakeholders: How can the new framework improve productivity and asset creation without weakening the rights-based protections associated with MGNREGA?
Follow the Full News Here: Historic Commencement of Viksit Bharat – G RAM G Act Across Rural India from July 1st 2026