Employment Guarantee Under VB-G RAM G

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Employment generation under the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) has witnessed a sharp decline during the transition from MGNREGA.
During April–July 2026, MGNREGA and VB-G RAM G together generated around 70 crore person-days, about 43% lower than the average of the preceding two years for the same period.
In July 2026 alone, employment generation is expected to be around 9 crore person-days, implying a decline of more than 40% compared with July 2025.

Parliament passed legislation in December 2025 to replace MGNREGA with VB-G RAM G.
The government initially announced that the transition would take place from 1 April 2026.
However, the transition was delayed because the rules required for implementation had not been finalised.
Draft VB-G RAM G Rules were released for public consultation on 22 May 2026.
Final rules began to be released towards the end of June, allowing the formal replacement of MGNREGA from 1 July 2026.
VB-G RAM G wage rates were notified on 30 June, with a minimum norm of ₹300 per day.

April–July normally accounts for nearly half of annual MGNREGA employment because these months coincide with the agricultural slack season in many parts of rural India.
Employment generation during April–July was:

Employment declined across all major States, although the magnitude varied considerably.
In 10 of 19 major States, the decline was between 60% and 85%.
Madhya Pradesh, Uttar Pradesh and Jharkhand witnessed particularly severe declines, with employment generation approaching a virtual standstill in some areas.

The decline is notable because VB-G RAM G was expected to increase employment generation.
The Union Budget allocation for VB-G RAM G in 2026-27 is ₹95,692 crore, slightly higher than actual MGNREGA expenditure in 2025-26.
Including State contributions, the total available resources were expected to reach around ₹1.5 lakh crore, about 70% higher than MGNREGA expenditure in 2025-26.
With wage rates broadly maintained in real terms, the larger allocation was expected to generate more employment rather than a sharp contraction.

The transition created administrative uncertainty during April–June 2026.
In some districts, officials reportedly stopped opening new MGNREGA works in anticipation of the new framework.
In several areas, workers had little or no access to employment during the transition period.
The Ministry's explanation that the July decline was mainly due to some States suspending VB-G RAM G under Section 6 has been criticised as insufficient because those States account for only a small share of total employment.
Concerns have also emerged regarding wage-payment systems, facial-recognition requirements at worksites and Centre-State cost-sharing arrangements.

The transition needs clear administrative guidelines and uninterrupted availability of employment.
Implementation should ensure that rural workers do not lose access to employment during institutional or technological changes.
Timely wage payments and accessible grievance-redressal mechanisms are essential.
States and local administrations need adequate capacity and clarity to implement the new employment guarantee framework.
The effectiveness of VB-G RAM G should ultimately be assessed through actual employment generated, wage payments and coverage of vulnerable rural households rather than only through budgetary allocations.