Centre Releases ₹25,863 Crore As New Rural Jobs Scheme VB-G-RAM-G Rolls Out Nationwide

(MENAFN- Live Mint) The Centre has released the first instalment of ₹25,863 crore to states for implementing the Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G-RAM-G), the government's new rural employment programme that replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from 1 July 2026, Union rural development minister Shivraj Singh Chouhan said on Sunday.

The announcement came during a video conference with rural development ministers from states and Union territories, where Chouhan reviewed the rollout and said the nationwide transition had been completed without any technical or operational disruptions.

The minister said the government had resolved to implement VB-G-RAM-G across the country without disruption from 1 July 2026.

Smooth rollout

He said he was pleased that the scheme had been successfully rolled out nationwide and that the transition from MGNREGA had been smooth and seamless, with no technical or operational issues reported so far.

Chouhan said the new programme achieved nationwide implementation in a single day, contrasting it with MGNREGA, which took nearly three years to expand across the country.

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According to the minister, work has already begun in a large number of gram panchayats during the first week of implementation, generating employment for lakhs of rural workers.

He singled out Andhra Pradesh, Kerala and Rajasthan for creating a large number of employment opportunities on the first day of implementation.

He also urged Odisha and West Bengal to operationalise the scheme in all remaining gram panchayats and asked Jharkhand to notify the programme and complete the required budgetary provisions.

States where Reserve Bank of India (RBI) accounts or other procedural formalities are still pending were also asked to complete them in a time-bound manner.

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The minister said wage rates under VB-G-RAM- have been increased by around 10% on average, with no state now having a notified wage rate below ₹300 per day.

The national average notified wage under the new scheme has increased to ₹327.4 per day from ₹298.8 under the erstwhile MGNREGA, translating into an average increase of ₹28.6 per day, or more than 10%.

The Act also raises the statutory wage employment guarantee from 100 days to 125 days for every eligible rural household.

Chouhan said the ₹25,863-crore release was aimed at ensuring states have adequate liquidity to pay wages within the mandated 15-day period.

He also asked state governments to release their matching contribution on time to avoid delays in wage payments.

Chouhan said gram sabhas and gram panchayats should identify works based on local development needs to ensure participatory planning and inclusive rural development.

To support implementation, the ministry of rural development has deployed area officers led by Joint Secretaries, who will coordinate with states and help resolve operational issues as the programme scales up.

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