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The central government on Monday, May 11, notified that the Viksit Bharat–Guarantee for Employment and Livelihood Mission (Rural), or VB–G RAM G Act will replace MGNREGA from July 1, 2026.

The new job guarantee scheme is expected to bolster rural employment and infrastructure development across the country. 

Union Agriculture and Rural Development Minister Shivraj Singh Chouhan noted that the legislation would usher in “a new dawn” for rural workers, farmers and villages by expanding livelihood opportunities and strengthening rural infrastructure.

“The government’s priority is to ensure that no labourer is deprived of work during the transition period,” Chouhan stated, while noting that the rules for implementation were being finalised after consultations with states.

The Centre has allocated above ₹95,000 crore for the programme in the Union Budget, while states have also made separate budgetary provisions. The overall annual expenditure under the scheme is expected to likely surpass ₹1.51 trillion mark, he said. 

Further, he noted that new framework guarantees 125 days of employment annually to rural households with adult family members, who volunteer for unskilled manual work on a yearly basis.

Chouhan also said the new framework guarantees 125 days of employment annually to rural households, up from the current 100 days under MGNREGA. He said all existing provisions under MGNREGA would remain operational during the transition period, and incomplete works under the old scheme would continue until July 1.

The Union Minister said states would be given up to six months to complete operational preparedness under the new law.

Meanwhile, the funding for rural employment works from July 1 would be routed via the VB–G RAM G framework even if some states are yet to complete preparations.

The administrative expenditure ceiling under the programme has been increased from 6% to 9%, aimed at ensuring timely salaries and adequate support for field staff.