Overview
The transition from MGNREGA to VB‑G RAM G has not delivered the expected surge in jobs. In July 2026, employment generation fell by more than 40% compared with July 2025, and the first four months of FY 2026‑27 recorded a 43% drop in person‑days generated.
Key Developments
- July 2026: Preliminary figure of 7.7 crore person‑days reported; Ministry now expects around 9 crore.
- Several states invoked Section 6 to pause the scheme, but the decline persists even after excluding them.
- Budget allocation: Union Budget earmarked ₹95,692 crore for VB‑G RAM G in 2026‑27, with total expected spending near ₹1.5 lakh crore.
- Wage rate fixed at ₹300 per day, similar to the real‑term rate under MGNREGA.
Important Facts
In FY 2024‑25 and 2025‑26, the April‑July period contributed about 50% of annual employment (128 crore and 119 crore person‑days respectively). In FY 2026‑27, the same period produced only 70 crore person‑days, a 43% fall.
Ten of the nineteen major states saw declines between 60% and 85%. States such as Madhya Pradesh, Uttar Pradesh and Jharkhand experienced near‑standstill employment.
Exam Relevance
The episode touches on multiple GS papers: GS‑2 (Polity) – centre‑state coordination, legislative provisions like Section 6; GS‑3 (Economy) – impact of fiscal allocations, employment‑generation metrics, and rural wage policies; GS‑4 (Ethics) – use of facial recognition for wage disbursement; and GS‑1 (History) – evolution of India’s employment guarantee from the 2005 MGNREGA to the present.
Way Forward
- Accelerate finalisation of VB‑G RAM G Rules to remove administrative bottlenecks.
- Ensure smooth centre‑state cost‑sharing and address wage‑payment glitches, especially where biometric verification is introduced.
- Monitor state‑level performance closely; provide targeted support to lagging states like UP and MP.
- Conduct periodic impact assessments to align the ₹1.5 lakh crore outlay with actual job creation.
Only with decisive corrective action can the new scheme fulfill its promise of enhanced rural employment.