What Is VB-G RAM G? Centre Ready To Launch New Rural Jobs Scheme From July 1 With New Smart Job Cards

The Centre will launch the new VB-G RAM G rural employment scheme from July 1, replacing MGNREGA. The programme guarantees 125 days of wage work per rural household and introduces smart job cards with face recognition.

Centre prepares to replace MGNREGA with new rural jobs scheme

The Central government is preparing to roll out new rural employment programme called the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G, from July 1, 2026.

The new scheme will officially replace the Mahatma Gandhi National Rural Employment Guarantee Act, commonly known as MGNREGA, which has been in operation since 2005.

According to sources, as quoted by PTI, the Union Rural Development Ministry informed a Parliamentary Standing Committee that 25 states have already allocated funds for the implementation of the new programme.

Officials said administrative and policy-level preparations for the nationwide rollout are now underway.

Parliamentary panel briefed on rollout

The update was shared during a meeting of the Parliamentary Standing Committee on Rural Development and Panchayati Raj.

The committee is headed by Congress MP Saptagiri Ulaka.

During the meeting, Rural Development Ministry Secretary Rohit Kansal reportedly briefed members about preparations for the new law.

Sources said major states have already allocated the funds required for the launch of the scheme from July 1.

What is changing under the new scheme

The VB-G RAM G Act, 2025 guarantees 125 days of wage employment per rural household every financial year.

This is higher than the earlier 100-day guarantee provided under MGNREGA.

The scheme is meant for rural households whose adult members volunteer to do unskilled manual work.

Officials described the new programme as a major upgrade over MGNREGA, saying it aims to improve transparency, accountability, planning and employment opportunities.

New smart job cards with face recognition

One of the biggest changes under the new scheme will be the introduction of smart job cards.

Workers will receive new “Gramin Rozgar Guarantee Cards” instead of the old MGNREGA job cards.

The cards will include face recognition features to improve transparency and reduce misuse.

However, the government said existing MGNREGA job cards will remain temporarily valid for workers whose e-KYC has already been completed until the new cards are issued.

How the funding model will work

Unlike MGNREGA, which worked mainly as a central sector scheme, VB-G RAM G will function under a centrally sponsored framework.

Officials said this change reflects the local nature of rural employment and village-level development work.

Under the new model, states will share both responsibility and costs. The standard funding pattern will be:

• 60:40 sharing between the Centre and states 
• 90:10 support for northeastern and Himalayan states 
• 100 percent central funding for Union Territories without legislatures

The estimated yearly cost of the scheme is around ₹1,51,282 crore, including the state share.

Out of this, the Centre’s estimated contribution is ₹95,692.31 crore.

Officials said the new structure will not place an unfair financial burden on states because they were already contributing to material and administrative costs under MGNREGA.

Main focus areas under VB-G RAM G

The new programme will focus on four major categories of work:

• Water security projects 
• Core rural infrastructure 
• Livelihood-related infrastructure 
• Extreme weather mitigation works

Under the old MGNREGA system, work categories included water conservation, irrigation, drought-proofing, flood control and renovation of water bodies.

Officials said the new framework aims to improve long-term planning and local development.

What are Viksit Gram Panchayat Plans

A major new feature under the law is the introduction of “Viksit Gram Panchayat Plans” or VGPPs.

These will be village-level development plans prepared by Gram Panchayats and approved by Gram Sabhas.

According to the government, all projects under the scheme must come from these plans to ensure that development work is based on local needs.

The Centre said this will help create “need-based and saturation-focused” rural development.

Transition from MGNREGA to be smooth

The government has assured that the transition from MGNREGA to VB-G RAM G will be smooth and uninterrupted.

MGNREGA will officially stand repealed from July 1, 2026, which is also the date when the new law comes into force.

Existing works under MGNREGA will continue and later be shifted into the new system.

Officials said incomplete public projects and ongoing works will be given priority for completion.

The government also clarified that fresh work projects can still be started during the transition period if labour demand increases.

Centre says new system will improve accountability

Officials believe the new structure will improve implementation and reduce misuse of funds.

They said stronger oversight mechanisms and better planning systems will help states manage rural development more effectively.

The inclusion of technology such as face recognition and village-level planning is also being presented as a step towards making rural employment programmes more transparent and accountable.

With July 1 approaching, the government is now speeding up preparations for one of the biggest changes to India’s rural employment system in nearly two decades.

(With inputs from agencies)