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Updated Jul 5, 2026 · 13:05
India News Updated Jul 5, 2026

Union Minister Shivraj Singh Chouhan Releases Rs 25,863 Crore for States Under VB-G RAM G Yojana

Union Minister Shivraj Singh Chouhan released Rs 25,863 crore as the first instalment for states under the VB-G RAM G Yojana. The scheme, effective from July 1, 2026, replaces MGNREGA and guarantees 125 days of wage employment per rural household annually. The Opposition has criticized the removal of Mahatma Gandhi's name and the new 60:40 fund-sharing ratio. Wages will be paid via DBT weekly or within 15 days, with unemployment allowance provisions for delays.

Union Minister Shivraj Singh Chouhan releases Rs 25,863 crore first instalment for states under VB-G RAM G Yojana

Bhopal, July 5

Union Minister for Rural Development and Agriculture Shivraj Singh Chouhan on Sunday released the first instalment of the 'Mother Sanction,' amounting to Rs 25,863 crore, to all states across the country under the Viksit Bharat G-RAM-G Yojana.

The Minister released the funds through video conferencing from Bhopal at 10 AM.

Speaking on the occasion, Chouhan expressed satisfaction over the implementation of the scheme, noting that it has successfully evolved from its predecessor.

"Today I am overjoyed and pleased to congratulate all of you, our Rural Development Ministers and officials from both the Central and State governments, on the fact that there have been no complaints whatsoever so far. This signifies that this policy has smoothly transitioned from MGNREGA into the Viksit Bharat G-RAM-G," the Union Minister said.

The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, or the VB-G RAM G Act, came into effect on July 1, 2026. The centrally sponsored welfare schemes were passed in the Winter Session of Parliament in 2025.

The legislation replaced the 100-day employment guarantee with a 125-day guarantee. However, the Opposition has criticised the legislation for removing Mahatma Gandhi's name from the scheme and bringing in the 60:40 share of funds between the Centre and States.

Under the new framework, every rural household whose adult members volunteer to undertake unskilled manual work shall be entitled to a statutory guarantee of 125 days of wage employment in every financial year. The enhanced guarantee is intended to strengthen livelihood security, improve rural incomes and support sustainable village-level development.

Employment shall be provided to workers against their demand for work within the prescribed timeframe, failing which workers shall remain entitled to unemployment allowance in accordance with the provisions of the Act.

The Act places strong emphasis on timely and transparent wage payments. Wages shall continue to be transferred directly into workers' bank or post office accounts through Direct Benefit Transfer (DBT). Wages are to be paid on a weekly basis or within fifteen days from the closure of the muster roll, failing which workers shall be entitled to delay compensation in accordance with the provisions of the Act.

— ANI

Reader Comments

Priya S

Finally, some tangible action! Rs 25,863 crore released directly to states—this is what development looks like. My cousin in rural MP says MGNREGA was great but often delayed payments. The weekly wage guarantee and DBT should fix that. Hope the 125 days actually translate to real work, not just on paper. 👍

Siddharth J

While I appreciate the intent, I'm skeptical. The 125-day guarantee sounds good, but we need robust implementation. In our village, corruption in job cards was rampant under MGNREGA. Without strict monitoring, this scheme might face similar issues. Also, why change the name? It feels political. Let's focus on execution now.

Michael C

Interesting change from 100 to 125 days. In India, rural unemployment is a major issue, especially post-harvest. This could provide crucial support. However, the 60:40 cost sharing might burden states with weaker finances. The success depends on state capacity. Hope this isn't just a pre-election gimmick.

Riya H

I think removing Gandhi's name is a mistake—it diminishes the scheme's historic connection. But I'm cautiously optimistic about the 125 days. My mother works under MGNREGA in Bihar and struggles with late payments. Weekly transfers could be a game-changer. Let's hold the government accountable for timely wages. 💪

Arjun K

As someone who works in rural development, I see potential here. The 125-day guarantee plus unemployment allowance is a safety net. However, the real test is in creating meaningful work—not just digging holes. States need to plan projects that build assets

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Reader Voices

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