VB-GRAMG Act to Replace MGNREGA from July 1

The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAMG) Act, 2025, will replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) across India from 1 July 2026. The Act was notified on 11 May 2026, and the VB-GRAMG Bill, 2025, received Presidential assent on 21 December 2025 after passage in Parliament on 18-19 December 2025.

Legal and administrative framework

MGNREGA was enacted in 2005 as the Mahatma Gandhi National Rural Employment Guarantee Act. The VB-GRAMG Act will operate as a Centrally Sponsored Scheme with shared financing between the Centre and the States. The funding ratio will be 60:40 for most States and 90:10 for North Eastern States, Himalayan States, and Union Territories.

Employment guarantee and coverage

The new Act increases the guaranteed wage employment for eligible rural households from 100 days to 125 days in a financial year. The scheme applies to rural households and continues the framework of wage employment linked to demand-based work provision. Existing e-KYC verified MGNREGA job cards will remain valid during the transition period until Gramin Rozgar Guarantee Cards are issued.

Programme design and convergence

The VB-GRAMG framework links employment with productive asset creation, climate resilience, and convergence with other government schemes. The programme is aligned with the Viksit Bharat @2047 vision, which is a long-term national development framework for India’s centenary of independence in 2047. The estimated annual outlay, including State shares, is projected to cross ₹1.51 lakh crore, and the Centre has allocated about ₹95,700 crore for 2026-27.

Important Facts for Exams

• MGNREGA was enacted in 2005 and provides a legal guarantee of wage employment in rural areas.
• The VB-GRAMG Act raises the annual employment guarantee from 100 days to 125 days.
• Most States will follow a 60:40 Centre-State funding pattern under the new scheme.
• North Eastern States, Himalayan States, and Union Territories will follow a 90:10 funding pattern.

Transition provisions

e-KYC verified MGNREGA job cards will continue to be valid during the shift to the new system. Works under the existing framework will continue until Gramin Rozgar Guarantee Cards are issued.