New Delhi: Over 9.69 crore person-days have been generated within a month of the rollout of the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) Act (VB-GRAM-G) which replaced MGNREGA, the Centre informed Lok Sabha on Tuesday.
In a written reply, Rural Development Minister Shivraj Singh Chouhan said the VB-GRAM-G Act, 2025, has been enacted and the VB-GRAM-G scheme has been implemented in rural areas across the country with effect from July 1, 2026.
The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) stands repealed from the same date, he said.
The minister said all states and Union territories have notified the scheme and have started works under VB-GRAM-G by providing employment to willing households as per provisions of the act.
“The transition from MGNREGA to VB-GRAM-G has been smooth, seamless and worker-centric. Over 9.69 crore person days have been generated in approximately within a month of the rollout of VB-GRAM-G Act,” the reply read.
The VB-GRAM-G provides for statutory guarantee of 125 days of wage employment in a financial year to every rural household whose adult members volunteer to undertake unskilled manual work, against the 100 days of guaranteed wage employment guaranteed under MGNREGA.
Responding to questions by Congress MPs Vijayakumar and Manickam Tagore on whether the Centre has taken note of concerns raised by several state governments regarding the financial structure of VB-GRAM-G, shifting up to 40 per cent financial burden to states compared to provisions under MGNREGA, Chouhan said the Centre is continuously engaging with states and Union territories through regular review meetings, consultations and other appropriate fora to facilitate effective implementation of the scheme.
“Suggestions given and concerns raised by the States/UTs during various review meetings and through written communications have duly been noted by the Ministry,” he said.
Under the new rural employment scheme, the fund-sharing arrangement between the Centre and state governments is 90:10 for the northeastern states, Himalayan states and Union territory (Uttarakhand, Himachal Pradesh and Jammu and Kashmir) and 60:40 for all other states and Union territories with legislature.
“Here, it is stated that, historically, most of the major rural employment schemes in the country have operated on shared funding models between the Centre and the States. Further, presently almost all Centrally Sponsored Schemes (CSS) across sectors are being implemented on the 60:40 sharing model. The 60:40 pattern adopted under this Act is therefore consistent with the broader framework of CSS,” the minister said in his reply.
Under MGNREGA, the Centre bore 100 per cent of the wage cost, and 75 per cent of the material cost.
Chouhan said in the current financial year, a provision of Rs 95,692.31 crore has been made for the Centre’s share for VB-GRAM-G — among the largest budget estimate for any rural employment programme in the country.
“With the inclusion of the corresponding estimated State share, the total programme outlay is likely to exceed Rs 1.51 lakh crore, which is expected to significantly accelerate rural transformation, large-scale employment generation and income enhancement in rural areas,” the minister said.
“Accordingly, financial sanctions for various components amounting to Rs 25,844.97 crore have already been issued to the States/UTs as the first instalment under the scheme. All States/UTs have reported that budget provisions have been made towards their matching share accordingly,” he said, asserting that the funding pattern is designed to balance fiscal responsibility, state participation and national rural development priorities.
In response to a question on formal consultation with states, parliamentary standing committee or stakeholders before introducing VB-GRAM-G, Chouhan said various operational gaps in the implementation of MGNREGA were observed during various review meetings with key stakeholders.
He said the Standing Committee on Rural Development and Panchayati Raj in various meetings also made recommendations regarding increase of permissible work days, revision of wage rates, strengthening transparency, and technological and administrative mechanisms.
All these suggestions, feedback and guidance were duly considered during the process of formulation of VB-GRAM-G, the minister said.
He asserted that the new law “retains and strengthens the rights-based and demand-driven nature of wage employment” as it provides an enhanced statutory guarantee of at least 125 days of wage employment in a financial year to rural households.
