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NDA Replaces MGNREGA with VB-G RAM G Act 2025, 5.32 Cr Households Availed Scheme in FY26 (8% Decline)

Target:UPSC GS-IIIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
31 Mar 2026
~2 min
Source: Indian Express
Key Data:5.32 crore households (FY 2025-26)8% declineVB-G RAM G Act, 2025Fund-sharing 90:10 & 60:40
Practice MCQs from today's news ▸
What This Article Covers

1.The NDA government has passed the VB-G RAM G Act, 2025 to repeal MGNREGA and introduce a new centrally sponsored rural employment scheme.

2.Official data shows 5.32 crore households availed MGNREGS in FY 2025-26, an 8% decline from 5.78 crore in FY 2024-25.

3.The new Act proposes a changed fund-sharing pattern (90:10 for 11 states, 60:40 for others) and includes a pause during peak agricultural season, attracting criticism for its fiscal impact on states.

The Big Picture
Prelims · HighMains · Medium

The NDA government has enacted the VB-G RAM G Act, 2025 to replace the two-decade-old MGNREGA. While the transition is pending, official data shows an 8% year-on-year decline in households availing the rural job scheme in FY 2025-26. This news is critical for exams as it covers a major policy shift, fiscal federalism, and trends in rural employment safety nets.

Exam Lens

Quick Exam Facts From News

MGNREGS Households (FY 2025-26)5.32 crore
Year-on-Year Decline8% (from 5.78 crore in FY 2024-25)
Peak Demand Year (MGNREGS)2020-21 (7.55 crore families)
Replacing ActVB-G RAM G Act, 2025
New Fund-Sharing Pattern90:10 (11 states), 60:40 (others)

1-Minute Revision

  • ›MGNREGS Households (FY 2025-26): 5.32 crore
  • ›Year-on-Year Decline: 8% (from 5.78 crore in FY 2024-25)
  • ›Target this Data: 5.32 crore households availed MGNREGS in FY 2025-26 (8% decline from 5.78 crore).
  • ›Target this Nodal Body: Ministry of Rural Development (responsible for MGNREGA/VB-G RAM G).
  • ›Target this Legal Point: VB-G RAM G Act, 2025 (replaces MGNREGA); Section 22 (fund-sharing pattern), Section 6 (pause during peak season).

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 is primarily responsible for the implementation of MGNREGA and its proposed replacement, the VB-G RAM G scheme?

Q2Statement-basedHard

Consider the following statements regarding the news:

1. The number of households that availed MGNREGS in the 2025-26 fiscal year was 5.32 crore.

2. Under the new VB-G RAM G Act, the fund-sharing pattern between the Centre and all states is uniform at 75:25.

3. MGNREGS was extended to the entire country from the financial year 2008-09.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the official data mentioned in the article, what was the approximate percentage decline in households availing MGNREGS in the 2025-26 fiscal year compared to the previous year?

Q4Application/ImpactMedium

What is a key point of criticism raised against the provisions of the newly enacted VB-G RAM G Act, 2025, as per the article?

All 25 MCQs ▸
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