Union Agriculture and Rural Development Minister Shivraj Singh Chouhan on Sunday, 5 July 2026, announced the release of ₹25,863 crore to states as the first instalment of the mother sanction under the newly launched Viksit Bharat – Ji Ram Ji rural employment scheme, which came into force across the country on 1 July 2026, the day after MGNREGA concluded its run.

Context

Posting on X, Chouhan said the fund release covers both wages for labourers and the cost of materials required for rural works, ensuring that neither component faces delays at the state level. Translating his announcement, he stated: 'Aaj humne majdoor bhai-bahon ko rozgar uplabdh karane ke liye rajon ko Mother Sanction ki pratham kist ke roop mein ₹25,863 crore ki rashi jari ki hai' ('Today we have released ₹25,863 crore to states as the first instalment of the mother sanction to provide employment to our worker brothers and sisters').

He also confirmed a wage hike under the new scheme, stating that no worker in any state will now receive less than ₹300 per day, representing an average increase of 10 per cent over previous rates.

Policy Backdrop

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, had for two decades guaranteed at least 100 days of wage employment annually to rural households. The scheme's wage rates were revised periodically through central notifications, with states required to meet or exceed the notified floor.

Viksit Bharat – Ji Ram Ji is positioned as the successor framework, aligned with Prime Minister Narendra Modi's Viksit Bharat 2047 vision, which treats prosperous and employment-generating villages as foundational to a developed India. Chouhan underlined the seamless transition, calling it 'a record' that MGNREGA ended on 30 June and the new scheme began nationwide on 1 July without interruption.

For the remaining approximately nine months of the current financial year, the government has provisioned roughly ₹1,51,282 crore under the scheme — a sum Chouhan described as adequate for both employment generation and the holistic development of villages.

Stakeholders and Impact

Rural labourers across all states and union territories are the primary beneficiaries. The guaranteed daily wage floor of ₹300 and the bundled material provision are designed to reduce the lag between work completion and payment — a persistent grievance under the previous scheme.

State governments are the implementing partners. Chouhan thanked them for large-scale preparatory work that enabled the scheme to go live without disruption, citing the rollout as evidence of the strength of India's federal cooperative structure. All 28 states and 8 union territories are covered under the launch.

What's Next

Attention will now turn to state-level utilisation of the released funds, the pace of job-card activation under the new scheme, and employment numbers generated during the monsoon season — traditionally the peak period for rural works. Parliamentary scrutiny of scheme performance is expected when the winter session convenes, with opposition likely to probe the transition's legal continuity and wage adequacy.

With ₹1,51,282 crore earmarked for the remainder of FY 2026-27, the government has signalled that rural employment spending will remain a centrepiece of its development agenda ahead of several state assembly elections on the horizon.