Archive · 24 Dec 2025
India Replaces MGNREGA with New Rural Employment Scheme
The Indian government is replacing the old rural employment program, MGNREGA, with a new one called VB-G RAM G. MGNREGA has been around for almost 20 years and guarantees 100 days of work each year to rural households.
The new scheme, VB-G RAM G, will guarantee 125 days of work but will have some changes.
It will be more focused on specific types of work like water projects and infrastructure.
The funding will also change, with states having to pay a bigger share.
Some people are worried that this might lead to less work for people when they need it most, especially in poorer states.
The government says the new scheme will be better and more focused on creating assets and helping with climate change.
It's not clear yet if the new scheme will be as good as the old one, but it's designed to fit better with India's changing economy.
The new scheme also has a 60-day pause period during sowing and harvesting to ensure agricultural labor availability.
The administrative expenses for the new scheme are higher at 9% compared to MGNREGA's 6%.
India's MGNREGA scheme, which guarantees 100 days of rural employment annually, is being replaced by the VB-G RAM G scheme.
The new VB-G RAM G scheme guarantees 125 days of work but shifts to a supply-driven framework with fixed budget allocations.
Funding under the new scheme will be shared between the Centre and states, with states bearing a higher financial burden.
Concerns include potential exclusion of households due to budget constraints, increased regional inequality, and centralization of power.
The government aims to address inefficiencies of MGNREGA and focus on asset creation and climate resilience with the new scheme.
- Who
- Indian government, rural households, state governments
- What
- Replacement of MGNREGA with VB-G RAM G scheme
- When
- 2025 (exact date not specified)
- Where
- Rural areas of India
- Why
- To adapt to changing economic landscape and address inefficiencies of MGNREGA
- Current Scheme
- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
- New Scheme
- VB-G RAM G (Viksit Bharat Guarantee for Rozgar and Ajeevika Mission)
- Current Guaranteed Days
- 100 days of work per year
- New Guaranteed Days
- 125 days of work per year
- Funding Structure (New Scheme)
- 60:40 for most states, 90:10 for North-eastern and Himalayan states
- Active Workers (2025-26)
- 12.1 crore
- Benefitted Households (2025-26)
- 4.7 crore
- Unused MGNREGS Funds (Srikakulam)
- Rs 680 crore (2019-20 to 2023-24)
- Total Expenditure (MGNREGA 2024-25)
- Rs 1.04 lakh crore
- Central Share (MGNREGA 2024-25)
- Rs 85,640.55 crore
- Estimated Annual Expenditure (New Scheme)
- Rs 1,51,282 crore
- Estimated Central Share (New Scheme)
- Rs 95,692.31 crore
- Estimated State Share (New Scheme)
- Rs 55,589.69 crore
- Additional Fiscal Burden on States
- Over Rs 30,000 crore annually
- Administrative Expenditure (New Scheme)
- 9%
- Administrative Expenditure (MGNREGA)
- 6%
Sources
VB-G RAM G scheme more beneficial for rural India, says Shivraj Singh
Rs 680 Crore MGNREGS Funds Unused in Srikakulam: Lanka Dinakar
Re-framing rural employment with VB-G RAM G
Palaniswami lacks courage to protest against removing Gandhi’s name from scheme: TN CM
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G RAM G scheme signals new era for rural development: DK Aruna
Decode Politics: In MGNREGA shadow, why G Ram G Act may face a bumpy road ahead
