The Centre has released the first instalment of ₹25,863 crore to all states under the Viksit Bharat G-RAM-G Yojana, according to an official statement. Union Minister for Rural Development and Agriculture Shivraj Singh Chouhan announced the release on Sunday via video conferencing from Bhopal.
Scheme Background
The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, or the VB-G RAM G Act, came into effect on July 1, 2026. The centrally sponsored welfare schemes were passed in the Winter Session of Parliament in 2025. The legislation replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a new framework.
Key Features
Under the new law, every rural household whose adult members volunteer for unskilled manual work is entitled to a statutory guarantee of 125 days of wage employment in every financial year, up from the previous 100-day guarantee. Employment must be provided within a prescribed timeframe; otherwise, workers are entitled to an unemployment allowance as per the Act.
Wage payments are transferred directly into workers’ bank or post office accounts via Direct Benefit Transfer (DBT). Wages are to be paid weekly or within 15 days from the closure of the muster roll, failing which workers receive delay compensation.
| Feature | MGNREGA (Old) | VB-G RAM G (New) |
|---|---|---|
| Employment guarantee | 100 days | 125 days |
| Funding ratio (Centre:State) | 60:40 (originally 100% Centre for wages) | 60:40 for all components |
| Name reference | Mahatma Gandhi | No personal name |
| Implementation start | 2006 | July 1, 2026 |
Implementation and Political Response
Speaking on the occasion, Chouhan expressed satisfaction over the scheme's implementation, noting it has successfully evolved from its predecessor. "Today I am overjoyed and pleased to congratulate all of you, our Rural Development Ministers and officials from both the Central and State governments, on the fact that there have been no complaints whatsoever so far. This signifies that this policy has smoothly transitioned from MGNREGA into the Viksit Bharat G-RAM-G," the Union Minister said.
However, the Opposition has criticised the legislation for removing Mahatma Gandhi’s name from the scheme and for introducing a 60:40 funding ratio between the Centre and states, which shifts a greater financial burden to states.
Next Steps
The first instalment disbursement marks the beginning of the scheme's operational rollout. The Centre will monitor state-level implementation to ensure timely wage payments and compliance with the new guarantee.
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