India swaps MGNREGA for VB-G RAM G, boosting rural workdays and linking jobs to infrastructure
The two-decade-old MGNREGA scheme was repealed on July 1 2026 and replaced by the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), which raises the guaranteed rural workdays to 125 per household and ties employment to infrastructure and climate-resilience projects.
On July 1 2026 the government formally ended the Mahatma Gandhi National Rural Employment Guarantee Act, replacing it with the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin). The new program raises the guaranteed employment entitlement from 100 to 125 days per rural household and aims to channel wages into durable assets, linking work to village-level infrastructure, water management, livelihood facilities and climate-resilience measures.
Funding will follow a 60:40 split, requiring states to finance 40% of programme costs. An SBI Research simulation comparing the new normative formula with average MGNREGA allocations (FY19-FY25, excluding FY21) projects an overall net gain of about Rs 16,946 crore for states, with Uttar Pradesh and Maharashtra emerging as the biggest beneficiaries, while Andhra Pradesh and Tamil Nadu could see losses. Tamil Nadu alone has engaged roughly 53 lakh households and generated 1,274 lakh person-days under MGNREGA, and Rajasthan, Bihar and Andhra Pradesh also account for large shares of past spending. The transition therefore reshapes how rural jobs are funded, allocated and delivered, raising questions about state contributions and the tangible outcomes on the ground.
Why it matters
The shift redefines India's rural employment safety net, affecting millions of workers and state budgets.
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