Viksit Bharat-G RAM G Act to replace MGNREGA, guarantee 125 days work

Union Minister Shivraj Singh Chouhan said the Centre has notified the Viksit Bharat-G RAM G Act, which will replace MGNREGA. It will guarantee 125 days of rural employment annually from July 1, 2026, with a budget of over Rs 95,600 crore.

New Act to Guarantee 125 Days of Rural Employment

Union Agriculture and Farmers Welfare and Rural Development Minister Shivraj Singh Chouhan on Monday said the Centre has issued the notification for the Viksit Bharat-G RAM G Act, 2025, under which rural households will be guaranteed 125 days of employment annually from July 1, 2026.

Speaking to reporters, Chouhan said the new legislation, officially titled the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission-Gramin (VB-G RAM G) Act, would replace and expand upon the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) framework under the Centre's "Viksit Bharat" vision.

"The notification of the Viksit Bharat-G RAM G Act has been issued. Starting July 1st, our brothers and sisters seeking employment in rural areas will be employed for 125 days per year, not 100 under the Viksit Bharat-G RAM G Act," Chouhan said.

Transition from MGNREGA

He clarified that all provisions of MGNREGA would continue during the transition period. "All provisions of MGNREGA will remain in effect during the interim period. Unfinished work will be completed under MGNREGA until July 1st," he said.

Implementation and Timeline

The Union Minister further stated that states would be given six months to complete necessary preparations for implementing the new scheme. "Under Viksit Bharat-G RAM G, most states will have six months to complete the required preparations. However, after July 1st, if any state fails to complete the required preparations, the funding pattern for the work will be under the Viksit Bharat-G RAM G scheme," he said.

Chouhan also said the Centre had allocated over Rs 95,600 crore in the Union Budget for implementation of the Act. "To implement the Act, the Government of India has allocated over Rs 95,600 crore in its budget," he added.

The Central government has officially notified that the VB-G RAM G Act, 2025, will come into effect from July 1, 2026, across all states and Union Territories. The new law is being seen as a successor and upgraded version of the MGNREGA framework under the Centre's Viksit Bharat vision.

Potential Economic Impact

The scheme could impact industries dependent on rural labour supply as workers may prefer guaranteed government wages over private sector and construction jobs. The programme is also expected to boost rural purchasing power, which could benefit FMCG, agri-input and other rural-focused businesses. Industries relying on rural workforce may also face higher compliance and labour cost pressures under the new framework. (ANI)

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