The Union Ministry of Rural Development on 12 May 2026 notified the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, popularly called VB-G RAM G, which will come into force across all rural areas of India from 1 July 2026 and will repeal the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 from the same date. Union Agriculture and Rural Development Minister Shivraj Singh Chouhan confirmed the notification, stating that the new statute increases the statutory rural employment guarantee from 100 days to 125 days per financial year for every household whose adult members volunteer for unskilled manual work. The Central Government has allocated Rs 95,692.31 crore as the Union share for FY 2026-27, with the total programme outlay expected to exceed Rs 1.51 lakh crore once state shares are added, making it the largest rural employment outlay at the Budget Estimate stage in India's history. Wage payments are to be released within 15 days of muster closure, with a delay compensation of 0.05 per cent per day on unpaid wages. The Act focuses on four thematic domains, namely water security, rural infrastructure, livelihood-related infrastructure, and mitigation of extreme weather events. Priority works under VB-G RAM G include watershed development, groundwater recharge, irrigation, rainwater harvesting, afforestation, rural roads, schools, Anganwadi centres, sanitation, renewable energy facilities and housing-linked assets. The Bill was passed by Parliament on 18-19 December 2025 and received Presidential assent thereafter, replacing a 20-year-old rights-based law that had been operational since 2005.
Government Notifies Viksit Bharat-G RAM G Act 2025 on 12 May 2026 to Replace MGNREGA From 1 July 2026 With Guaranteed 125 Days of Rural Wage Employment and Rs 95,692 Crore Central Allocation for FY 2026-27
Government notifies VB-G RAM G Act 2025 on 12 May 2026; effective 1 July 2026, the new law replaces MGNREGA and guarantees 125 days of rural wage employment with Rs 95,692.31 crore central allocation for FY 2026-27.
Key facts
- VB-G RAM G Act 2025 notified on 12 May 2026 to commence from 1 July 2026 in all rural areas
- Increases statutory rural employment guarantee from 100 to 125 days per financial year
- Central allocation of Rs 95,692.31 crore for FY 2026-27 with total outlay above Rs 1.51 lakh crore
- Wage payment within 15 days of muster closure with delay compensation of 0.05 per cent per day
- Four thematic domains - water security, rural infrastructure, livelihood infrastructure, climate resilience
- MGNREGA 2005 stands repealed from 1 July 2026
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Practice MCQ from this story
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With reference to the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 notified on 11 May 2026, consider the following statements: 1. It increases the statutory rural employment guarantee from 100 days to 125 days per financial year. 2. It will come into force from 1 July 2026 and the MGNREGA 2005 will continue to operate in parallel for another year. Which of the statements given above is/are correct?
Statement 1 is correct - the new Act raises the rural employment guarantee from 100 to 125 days per financial year. Statement 2 is incorrect - the Act comes into force on 1 July 2026 and on the same date MGNREGA 2005 stands repealed; the two laws will not operate in parallel.
Source: Press Information Bureau
Frequently asked questions
What does VB-G RAM G stand for?
VB-G RAM G stands for Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, the new rural employment law that replaces MGNREGA.
How many days of guaranteed wage employment does VB-G RAM G provide?
VB-G RAM G provides 125 days of guaranteed wage employment per financial year to every rural household whose adult members volunteer for unskilled manual work, up from 100 days under MGNREGA.
When does the new Act come into force?
The Act comes into force across all rural areas of India from 1 July 2026; on the same date the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 stands repealed.
What is the Central allocation for FY 2026-27?
The Union Government has allocated Rs 95,692.31 crore as the Central share for FY 2026-27, with total programme outlay expected to exceed Rs 1.51 lakh crore once state shares are added.
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