Centre releases ₹25,863 crore to states under VB-G-RAM-G rural jobs scheme
Synopsis
India's MGNREGA replacement — VB-G-RAM-G — has been rolled out nationwide in a single day, something its predecessor took three years to achieve. With ₹25,863 crore released as the first instalment and wages raised to a floor of ₹300 per day, the Centre is signalling both scale and speed. The real test will be whether timely wage payments and durable asset creation follow.
Key Takeaways
The Centre released ₹25,863 crore as the first instalment to states under the VB-G-RAM-G scheme on 5 July 2025 .
VB-G-RAM-G replaced MGNREGA and was rolled out nationwide on 1 July — in a single day, compared to nearly three years for MGNREGA.
Wage rates have been hiked by an average of 10 per cent ; no state will now pay below ₹300 per day .
Andhra Pradesh , Kerala , and Rajasthan were commended for early employment generation; Jharkhand was asked to formally notify the scheme.
Transparency measures including face authentication and geo-tagging are mandatory; Joint Secretary-rank Area Officers deployed for state-level support.
The Centre on Sunday, 5 July released the first instalment of ₹25,863 crore to states and Union Territories for the implementation of the Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin), or VB-G-RAM-G, the successor to the long-running MGNREGA programme. Union Agriculture and Rural Development Minister Shivraj Singh Chouhan announced the release at a video conference with Rural Development Ministers across all states and UTs convened to review the scheme's rollout.
What the First Instalment Covers
The ₹25,863 crore disbursement forms part of the scheme's 'mother sanction' — the overarching fund allocation from which state-level releases are drawn. Chouhan said the instalment is specifically designed to ensure states hold adequate liquidity so that wages can be paid within 15 days of work completion. He urged all state governments to release their matching share on time to prevent any delay in payments reaching rural workers.
Nationwide Rollout in a Single Day
The minister highlighted that while MGNREGA took nearly three years to be implemented across the country, VB-G-RAM-G was rolled out nationwide on a single day — 1 July — with no reported technical or operational disruptions. Chouhan attributed this to the leadership of Prime Minister Narendra Modi, inter-governmental cooperation, and the country's administrative capacity. Work has already commenced in a large number of Gram Panchayats during the first week, with employment provided to lakhs of rural workers.
State-wise Performance and Gaps
Andhra Pradesh, Kerala, and Rajasthan were specifically commended for generating a significant number of employment opportunities on the very first day of the scheme. However, Chouhan urged Odisha and West Bengal to accelerate work in remaining Gram Panchayats, and called on Jharkhand to formally notify the scheme and make the necessary budgetary provisions. States where RBI accounts or other administrative formalities remain pending were asked to complete them in a time-bound manner.
Higher Wages and Accountability Measures
Wage rates under VB-G-RAM-G have been increased by an average of around 10 per cent, and no state will now have a daily wage below ₹300. The minister underscored that transparency mechanisms — including face authentication, geo-tagging, and other technology-driven safeguards — must be implemented in full to prevent irregularities. The Ministry has also deployed Area Officers of Joint Secretary rank to provide on-ground support and coordinate with states on implementation issues.
What Comes Next
Chouhan reiterated that there will be no shortage of funds, with future instalments to be released based on demand from states. Gram Sabhas and Gram Panchayats have been directed to select development works based on local needs, ensuring that rural asset creation remains inclusive and participatory. The government's stated objective is dignified employment, timely wage payments, and the development of durable rural infrastructure.
Point of View
But the structural question is whether the face-authentication and geo-tagging infrastructure is robust enough in low-connectivity rural areas to prevent both fraud and wrongful exclusion. The ₹300 wage floor is meaningful, yet it still trails inflation-adjusted expectations in several high-cost states. The real scorecard will emerge at the six-month mark — not at the launch event.
NationPress
5 Jul 2026
Frequently Asked Questions
What is the VB-G-RAM-G scheme?
VB-G-RAM-G — Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin) — is the Centre's replacement for MGNREGA, aimed at providing guaranteed rural employment with higher wages and stronger accountability mechanisms. It was launched nationally on 1 July 2025.
How much has the Centre released under VB-G-RAM-G and why?
The Centre released ₹25,863 crore as the first instalment on 5 July 2025, drawn from the scheme's 'mother sanction'. The release is intended to ensure states have sufficient funds to pay wages within 15 days of work completion.
How does VB-G-RAM-G differ from MGNREGA?
VB-G-RAM-G was rolled out across the entire country on a single day, compared to nearly three years for MGNREGA. It also raises the minimum daily wage to ₹300 — an average increase of around 10 per cent — and mandates face authentication and geo-tagging for greater transparency.
Which states were flagged for slow implementation?
Odisha and West Bengal were urged to begin work in remaining Gram Panchayats, while Jharkhand was asked to formally notify the scheme and make budgetary provisions. States with pending RBI account formalities were also directed to complete them urgently.
What is the minimum daily wage under VB-G-RAM-G?
Under VB-G-RAM-G, no state will have a daily wage rate below ₹300. Wage rates have been raised by an average of around 10 per cent compared to MGNREGA levels, reflecting the government's stated commitment to improving rural income and social security.
