PIB TrackerCentre releases ₹25,863 crore first installment under its new rural jobs guarantee, VB-G-RAM-G
Rural Development Minister Shivraj Singh Chouhan released a ₹25,863 crore 'Mother Sanction' to states — the first installment under the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), the wage-employment law that replaced MGNREGA when it rolled out nationwide on 1 July 2026.
What happened
- Union Rural Development Minister Shri Shivraj Singh Chouhan released the first installment — a 'Mother Sanction' of ₹25,863 crore — to States and UTs under VB-G-RAM-G, in a video conference with all State/UT Rural Development Ministers.
- VB-G-RAM-G — the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) — replaces MGNREGA and was rolled out nationwide on 1 July 2026 in a single day.
- Under the new scheme, no State's wage will fall below ₹300 a day, and wage rates were raised about 10% on average; wages are to be paid within 15 days, with States releasing their matching share.
- Transparency tools — Face Authentication and Geo-tagging — are mandated, fund release is demand-driven, and Joint-Secretary-rank Area Officers support States.
- The Minister praised Andhra Pradesh, Kerala and Rajasthan for early job generation, urged Odisha and West Bengal to begin, and asked Jharkhand to notify the scheme and its budget.
For Prelims
- VB-G-RAM-G: The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) — a rural wage-employment guarantee that replaced MGNREGA, rolled out nationwide on 1 July 2026.
- Days of work: The guarantee was raised from 100 to 125 days of wage employment per rural household per year (MGNREGA guaranteed 100 days).
- Wage floor: No State below ₹300/day; wages to be paid within 15 days, echoing MGNREGA's timely-payment and unemployment-allowance logic.
- Cost sharing: Reported at 60:40 (Centre:State) for general States and 90:10 for North-Eastern States/UTs — a larger State share than under MGNREGA.
- Transparency stack: Face Authentication, Geo-tagging of assets and demand-driven fund release — part of the Aadhaar/DBT-linked accountability toolkit.
- Local bodies: As with MGNREGA, the Gram Sabha and Gram Panchayat anchor planning and selection of works (linked to the 73rd Constitutional Amendment).
- Don't confuse: The ₹25,863 crore is the first installment ('Mother Sanction'), not the annual outlay; and the statutory name uses 'Ajeevika' (the Act replaced MGNREGA, 2005).
For UPSC: Read VB-G-RAM-G as the redesign of India's rural 'right to work' — a demand-driven wage guarantee (now 125 days, ₹300 floor, 15-day payment) with a heavier State cost-share (60:40 / 90:10 for NE) and an Aadhaar/face-auth-geo-tag transparency stack. Anchor the continuity-and-change from MGNREGA (2005), the Centre-State fiscal-federalism angle of the 40% State burden, the role of Gram Sabha/Panchayats, and durable rural asset creation and inclusive growth.
What it is NOT: The ₹25,863 crore is the first installment ('Mother Sanction'), not the scheme's full annual outlay. VB-G-RAM-G is a demand-driven wage-employment guarantee, not an unconditional cash transfer — work must be demanded and done, and States must release their matching share. It replaces MGNREGA rather than adding a parallel programme.
For Mains
Syllabus: GS3.2 · GS2.10 · Linkage L1
Anchor
The 'right to work' redesigned — a rural wage-employment guarantee as a tool of inclusive growth, income security and durable asset creation, now with a larger State stake.
Substantiation (data)
VB-G-RAM-G rolled out nationwide 1 July 2026, replacing MGNREGA; first installment ₹25,863 crore; wage floor ₹300/day, ~10% higher rates, 15-day payment; guarantee raised 100→125 days; cost-share 60:40 (90:10 for NE).
Exemplification
A concrete instance of demand-driven welfare with a technology-led transparency stack — Face Authentication, geo-tagging of assets and demand-based fund release.
Problematisation
The larger 40% State cost-share raises fiscal-federalism and uneven-uptake concerns (some States slow to start); timely payment, work availability and asset quality remain implementation challenges.
Way-forward
Ensure States release matching funds and notify budgets promptly, protect timely wage payment and unemployment allowance, use geo-tagging for durable assets, and hand-hold lagging States.
Position
Government stance: a seamless, single-day nationwide rollout with higher wages and stronger transparency advances employment and rural livelihoods under Viksit Bharat.
Deploys into: Rural employment & inclusive growth (GS3.2 inclusive growth & issues arising from it) · welfare-scheme design and delivery (GS2.10 government policies & interventions) · the MGNREGA-to-VB-G-RAM-G transition, Centre-State cost-sharing, and the DBT/face-auth transparency stack.
Ministry of Rural Development · 2026-07-05 · PRID 2281235 · PIB source ↗