VB-GRAM G Scheme Gets First Instalment of ₹25,863 Crore

The Union Ministry of Rural Development released the first instalment of ₹25,863 crore for the rural employment programme under the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025. The release took place on 5 July 2026 through video conferencing from Bhopal, and the Act came into effect across rural India on 1 July 2026.

VB-GRAM G Act, 2025

The VB-GRAM G Act, 2025 replaced the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The new law provides a statutory wage employment guarantee of 125 days in a financial year for eligible rural households, compared with 100 days under MGNREGA.

Wage Rates and Funding Pattern

The revised wage structure under VB-GRAM G fixed an interim base wage rate of ₹300 per day from 1 July 2026. The national average daily wage increased by ₹28.6 to ₹327.4 per day, compared with ₹298.8 under MGNREGA. The funding pattern under the scheme follows a 60:40 Centre-State ratio for most States and a 90:10 ratio for North-Eastern and Himalayan States. An interim allocation of ₹95,692.31 crore has been made for States and Union Territories for wage payments and works under the new framework.

State-wise Allocation

Uttar Pradesh received ₹3,210.76 crore in the first instalment. Andhra Pradesh received ₹2,545.5 crore, and Rajasthan received ₹2,274.37 crore.

Important Facts for Exams

• MGNREGA, 2005, is the predecessor law of VB-GRAM G Act, 2025.
• VB-GRAM G provides 125 days of wage employment in a financial year.
• The interim base wage rate under the scheme is ₹300 per day.
• The scheme uses a 60:40 Centre-State funding pattern for most States.

Administrative Provisions

The first instalment was released to support wage payments within the mandated 15-day period. State governments have been asked to release their matching share on time under the scheme framework.