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VB-G RAM G Act 2025 Replaces MGNREGA: 125-Day Guarantee, 40% State Funding, ₹95,692 Cr Allocation FY 2026-27

Target:UPSC GS-IIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
27 May 2026
~2 min
Source: Indian Express
Key Data:125 days40% state funding₹95,692.31 croreJuly 1, 2026
Bodies:Ministry of Rural DevelopmentFinance Commission
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What This Article Covers

1.The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, will replace MGNREGA from July 1, 2026, with draft rules released for public consultation.

2.Key changes include an increase in guaranteed work days from 100 to 125, a shift to 40% state funding (except for NE/Himalayan states & UTs), and a top-down resource allocation based on the Sixteenth Finance Commission formula.

3.The transition allows existing MGNREGS job card holders to avail work under the new scheme after e-KYC verification, and the Centre has allocated ₹95,692.31 crore for FY 2026-27.

The Big Picture
Prelims · HighMains · High

The VB-G RAM G Act, 2025, is set to replace the landmark MGNREGA from July 1, 2026. This major rural employment reform increases guaranteed work days to 125 and introduces a 40% funding burden on states, fundamentally altering the fiscal architecture of India's largest social welfare scheme.

Exam Lens

Quick Exam Facts From News

Act EnactedDecember 2025
Effective FromJuly 1, 2026
Guaranteed Days125 (increased from 100)
State Funding Burden40% (General States)
Allocation FY26-27₹95,692.31 Crore
Draft Rules ReleasedMay 23, 2026

1-Minute Revision

  • ›Act Enacted: December 2025
  • ›Effective From: July 1, 2026
  • ›Target this Data: Increase from 100 to 125 guaranteed work days.
  • ›Target this Nodal Body: Ministry of Rural Development.
  • ›Target this Legal Point: VB-G RAM G Act, 2025 replaces MGNREGA.

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Q1Static LinkageEasy

Which ministry released the draft rules for the implementation of the VB-G RAM G Act?

Q2Statement-basedHard

Consider the following statements regarding the VB-G RAM G Act:

1. It increases the number of guaranteed wage employment days from 100 to 125 per rural household.

2. Under the Act, all states will bear 40% of the funding burden for the wage bill.

3. The Act provides for a 60-day pause during peak agricultural seasons.

Which of the statements given above is/are correct?

Q3Data-centricMedium

What is the total central allocation for the VB-G RAM G scheme for the financial year 2026-27 as mentioned in the article?

Q4Application/ImpactMedium

According to the draft rules, what is a key provision made for existing MGNREGS workers during the transition to the VB-G RAM G scheme?

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