EconomySocial_Issues
News 1 of 24

VB-GRAM G Act Replaces MGNREGA: 68% Drop in Employment, SC Flags Right to Work

Target:UPSC GS-IIIMPSCTeachingSSC GABankingPrelims HighMains HighStatic GK Link
01 Sept 2026
~2 min
Source: The Hindu
Key Data:68% decrease in employment3.44 crore households44 crore person-daysArticle 21Article 23Article 41
Bodies:Supreme CourtMinistry of Rural Development
Practice MCQs from today's news ▸
What This Article Covers

1.MGNREGA replaced by VB-GRAM G Act in Dec 2025; employment fell 68% in July-August 2026 vs previous 5-year average.

2.Supreme Court observed that the right to work may be linked to Article 21 (right to life), echoing the 1985 Olga Tellis judgment.

3.VB-GRAM G Act puts arbitrary cap on funds, delinks wages from minimum wage, and shifts fiscal burden to states — violating the doctrine of non-retrogression.

The Big Picture
Prelims · HighMains · High

The Union government replaced MGNREGA with the VB-GRAM G Act in December 2025, leading to a 68% fall in rural employment. The Supreme Court has raised the question whether the 'Right to Work' should be treated as a fundamental right under Article 21. This news is critical for understanding the constitutional status of socio-economic rights, the doctrine of non-retrogression, and the fiscal federalism debate around Centrally Sponsored Schemes.

Exam Lens

Quick Exam Facts From News

Employment drop68% in July-Aug 2026 vs 5-yr avg
Households worked (avg)3.44 crore households
Person-days (avg)44 crore person-days
New ActVB-GRAM G (Viksit Bharat — Guarantee for Rozgar & Ajeevika Mission (Gramin))
Old ActMGNREGA (2005)
Key SC caseOlga Tellis vs BMC (1985) — right to livelihood part of Article 21
Doctrine citedNon-retrogression (Navtej Singh Johar case)

1-Minute Revision

  • ›Employment drop: 68% in July-Aug 2026 vs 5-yr avg
  • ›Households worked (avg): 3.44 crore households
  • ›Target this Data: 68% decrease in employment in July-August 2026 compared to 5-year average under MGNREGA.
  • ›Target this Nodal Body: Ministry of Rural Development (for MGNREGA/VB-GRAM G).
  • ›Target this Legal Point: Article 21 (right to life) and Article 23 (prohibition of forced labour) — linked to right to work by SC.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which ministry/department is primarily responsible for implementing the MGNREGA and the new VB-GRAM G Act mentioned in the news?

Q2Statement-basedHard

Consider the following statements:

1. The Supreme Court in Olga Tellis vs Bombay Municipal Corporation (1985) ruled that the right to livelihood is a necessary part of the fundamental right to life under Article 21.

2. The VB-GRAM G Act links wages to the Minimum Wages Act, 1948, ensuring that workers receive at least the minimum wage.

3. The doctrine of non-retrogression implies that the state cannot implement measures that deliberately undo a right once it has been realized.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the percentage decrease in employment under the VB-GRAM G Act in July and August 2026 compared to the average of the preceding five years under MGNREGA?

Q4Application/ImpactMedium

What is the primary reason the authors argue that the VB-GRAM G Act violates the doctrine of non-retrogression?

All 25 MCQs ▸
You finished this topic
Explore Related Topics
Related Current Affairs
Polity Current Affairs

SC: Right to Walk on Demarcated Footpaths is Fundamental Right under Article 19(1)(d) & Article 21

The Supreme Court declared the right to walk on demarcated footpaths as a fundamental right under Articles 19(1)(d) and 21, prioritizing pedestrians over motorized vehicles. It has now directed all states and UTs to respond on implementation, making it a high-yield topic for Prelims (constitutional articles, dates) and Mains (urban governance, fundamental rights).

Social Issues Current Affairs

Parliamentary Panel Flags DDU-GKY Employment Gap; 18.38 Lakh Trained, 11.94 Lakh Placed

A parliamentary committee has found that many candidates trained under the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) are not securing jobs or are underpaid, and fund utilization across major rural skilling schemes is poor. This highlights systemic skill-employment mismatch and the need for robust placement tracking and post-placement support.

Social Issues Current Affairs

Parliamentary Panel Report: Health Spend at 1.4% vs 2.5% GDP Target; Article 21 Right to Health

The Standing Committee's 176th report has yet again flagged India's stagnant public health spend—1.4% of GDP against the 2.5% target in the National Health Policy, 2017. Its proposed hospital-vs-hotel benchmarking overlooks the constitutional right to health under Article 21. With private equity flowing into healthcare and the Supreme Court examining regulation under the Clinical Establishments Act, this is an important multi-dimensional issue for aspirants.

Economy Current Affairs

Centre Mandates 60:40 Centre-State Funding Split for VB-G RAM-G Rural Employment Scheme

The Centre has shifted the funding pattern of the National Rural Employment Guarantee Scheme (now VB-G RAM-G) from 100% central funding to a 60:40 Centre-State split (90:10 for Himalayan/Northeast states). This marks a major fiscal federalism change, with states allocating full 40% despite political opposition. Essential for Prelims (ratio, scheme name) and Mains (fiscal federalism, rural wage floor).

Economy Current Affairs

VB-G RAM G Reports 49.94% YoY Decline in Rural Employment Generation in July 2026

The government replaced the two-decade-old MGNREGS with the new VB-G RAM G scheme from July 1, 2026. First-month data shows a sharp 49.94% year-on-year drop in person-days (7.67 crore) and a 51.45% fall in households availing work (68.94 lakh). This decline, the lowest in five years, raises concerns about rural demand and the fallback for agricultural labourers during an erratic monsoon.

Economy Current Affairs

VB-G RAM G Launch Sees 40%+ Employment Crash vs MGNREGA July 2025

India's new rural employment guarantee scheme (VB-G RAM G) replacing MGNREGA has witnessed a catastrophic 40%+ decline in employment generation in its first month (July 2026) compared to the same month last year. With some of India's poorest states seeing near-zero employment for months, this poses a severe rural distress risk and is a critical topic for exams.

Polity Current Affairs

Tata Trusts’ 66% Stake & Affirmative Voting Rights under Articles 104B, 121: SC Verdict Explained

Tata Trusts, holding about 66% of Tata Sons, are challenging the reappointment of N Chandrasekaran as executive chairman, citing the affirmative voting rights of their nominee directors under the Articles of Association. The Supreme Court’s 2021 Tata-Mistry judgment upheld these special rights, making it the key legal backdrop to the current boardroom dispute. For exams, this news tests corporate governance, fiduciary duties, and the binding force of a company’s Articles.

Social Issues Current Affairs

NFSA Amendment Replaces 35 kg AAY Rations with 7 kg Per Capita, Cuts 80% for Solo Women

The proposed amendment to the National Food Security Act (NFSA) replaces the 35 kg monthly household ration for Antyodaya (AAY) families with a per-capita system of 7 kg per person (capped at 35 kg). This will drastically cut entitlements for 53% of AAY households (those with fewer than 5 members), hitting the poorest hardest — especially 1 million single women, mostly widows, who will lose 80% of their foodgrain.