EconomyGS3+ GS2

VB-G RAM G Scheme Launched Nationwide with ₹95,692 Crore Allocation

PIB·2026-08-01· Read original

"VB-G RAM G Scheme Launched Nationwide with ₹95,692 Crore Allocation"

Prelims Facts

  • •VB-G RAM G Act enacted in 2025; came into force on 1 July 2026 across rural areas of the entire country
  • •Guarantees 125 days of wage employment per rural household annually (MGNREGA guaranteed 100 days)
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Key Terms

VB-G RAM G

Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin); statutory rural employment guarantee scheme enacted in 2025, in force from July 2026

Mother Sanction

formal financial authorisation issued by the Centre to States enabling actual wage disbursements under the scheme

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Study Note

BackgroundCore Concept

Background

India's rural employment guarantee architecture has its roots in the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, which provided a statutory right to 100 days of unskilled wage employment per household per year. Over two decades, MGNREGA became one of the world's largest public works programmes, functioning as a critical social safety net, a wage floor for rural labour, and a demand-driven mechanism for rural asset creation. However, persistent criticisms accumulated: chronic wage payment delays, inadequate budgetary allocations relative to demand, administrative bottlenecks in the Management Information System (MIS), and a ceiling of 100 days that critics argued was insufficient for households in agrarian distress.

The Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G RAM G) Act, 2025 represents a legislative overhaul of this framework. Enacted in 2025 and brought into force from 1st July, 2026, it replaces the earlier MGNREGA structure with a new statutory guarantee, raising the entitlement from 100 to 125 days of wage employment per household annually. The scheme is positioned within the broader 'Viksit Bharat' (Developed India) policy vision, signalling the government's intent to embed rural employment security within a long-term development framework rather than treating it as a purely welfare measure.

All States and Union Territories have notified the VB-G RAM G Scheme and commenced implementation, reflecting the cooperative federalism dimension of the programme — the Centre sets the statutory framework and funds wages, while States manage implementation, asset creation, and local administration.

The Topic Explained

The VB-G RAM G Act, 2025 provides a statutory guarantee — meaning it is a legally enforceable right, not a discretionary scheme — of 125 days of wage employment to every rural household whose adult members volunteer to undertake unskilled manual work. This is a significant upgrade from MGNREGA's 100-day guarantee and carries the same demand-driven character: employment must be provided within a stipulated timeframe of application, failing which an unemployment allowance becomes payable.

The funding architecture is structured around a two-tier allocation mechanism. First, a normative allocation is distributed among States and UTs based on projected demand and historical utilisation patterns. Second, mother sanctions — formal financial authorisations — are issued in instalments to enable States to make actual wage payments. …

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Related PYQs

2017GS1 Prelims

With reference to 'National Investment and Infrastructure Fund', which of the following statements is/are correct?

1.It is an organ of NITI Aayog.

2.It has a corpus of ₹ 4,00,000 crore at present.

Select the correct answer using the code given below:

A1 only
B2 only
CBoth 1 and 2
DNeither 1 nor 2
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2014GS1 Prelims

If the interest rate is decreased in an economy, it will

Adecrease the consumption expenditure in the economy
Bincrease the tax collection of the Government
Cincrease the investment expenditure in the economy
Dincrease the total savings in the economy
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Practice MCQs

Economymedium

With reference to the Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G RAM G) Scheme, consider the following statements:

1.The VB-G RAM G Act was enacted in 2025 and came into force on 1st July, 2026.

2.The scheme guarantees 150 days of wage employment to every rural household annually.

3.The budgetary allocation for FY 2026-27 for the scheme is ₹95,692.31 crore.

Which of the statements given above is/are correct?

A1 and 2 only
B1 and 3 only
C2 and 3 only
D1, 2 and 3
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Economymedium

Consider the following pairs comparing MGNREGA and VB-G RAM G:

1.Statutory basis — MGNREGA: Act of 2005 :: VB-G RAM G: Act of 2025

2.Days guaranteed per household — MGNREGA: 100 days :: VB-G RAM G: 125 days

3.Nature of employment — MGNREGA: skilled work :: VB-G RAM G: unskilled manual work

How many of the above pairs are correctly matched?

AOnly one
BOnly two
CAll three
DNone
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Economyhard

Assertion (A): The VB-G RAM G Act, 2025 provides a statutory framework for rural employment guarantee, making the entitlement legally enforceable.

Reason (R): A statutory guarantee is superior to a scheme under executive orders because it cannot be curtailed without legislative amendment and provides a legal basis for grievance redressal.

Which of the following is correct?

ABoth A and R are true, and R is the correct explanation of A
BBoth A and R are true, but R is not the correct explanation of A
CA is true but R is false
DA is false but R is true
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