Viksit Bharat GRAMG: Key Features, MGNREGA Comparison & Rural Development Reform

The Central Government is launching a massive ₹1.25 lakh crore rural development transformation, rolling out the new ‘Viksit Bharat GRAMG’ framework that completely replaces the old MGNREGA system starting July 1, 2026. 

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Key Highlights

• Massive Financial Inflow: The Union Minister for Agriculture & Farmers Welfare and Rural Development released an interim package of ₹95,692 crore to States and Union Territories. Combined with existing funds, total capital surpasses ₹1.25 lakh crore.
• Direct-to-Village Funding: The entire capital pool will flow directly into nearly 2.80 lakh Gram Panchayats, ensuring individual village councils have several lakh rupees for localized asset creation.

Key Provisions of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025

The VB-G RAM G Bill restructures the scheme around principles of strategic convergence and shared governance:

• Increased Guarantee: The statutory guarantee is raised from 100 days to 125 days of wage employment for every rural household.
• Funding Responsibility Shift: The financial burden moves from a predominantly Central-funded wage model to a Centrally Sponsored Scheme with shared financial liability:
  • 60:40 Centre-State share for most states.
  • 90:10 Centre-State share for northeastern and Himalayan states and UTs (Uttarakhand, Himachal Pradesh and Jammu and Kashmir).
• Allocation Model: The demand-driven ‘labour budget’ is replaced by a state-wise normative allocation determined by the Central Government.
• Mandatory Work Suspension: States are granted the authority to notify a period of up to 60 days in a financial year, coinciding with peak agricultural seasons (sowing/harvesting), during which scheme works shall not be undertaken to avoid labour shortages.
• Focus on Strategic Assets: Works must align with the Viksit Bharat National Rural Infrastructure Stack, focusing on four thematic domains: 
  • Water Security, 
  • Core Rural Infrastructure, 
  • Livelihood-related Infrastructure, and 
  • Mitigation of Extreme Weather Events. 
• Digital Integration: Mandatory use of GIS-based tools, PM Gati Shakti layers, and AI audits is statutory.
• Retention of Unemployment Allowance: The Bill retains the provision for an unemployment allowance if work is not provided within 15 days of application.

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Comparison between MGNREGA vs. VB-G RAM G Bill

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