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VB-G RAM JI Scheme: Funds Allocated, Largest Budget for Rural Employment

UPSC / SSC current affairs note · Schemes

SchemesEmploymentRural Development

Why in news

The Viksit Bharat - Rozgar aur Aajivika ke liye Guarantee Mission (Gramin) (VB-G RAM JI) Act, 2025 has come into force from 1 July 2026, with all states and union territories notifying the scheme. The government has released details of interim allocations and first installment releases, highlighting the largest-ever budget allocation for a rural employment scheme.

Background

The VB-G RAM JI scheme is a statutory framework providing legal guarantee of 125 days of wage employment to rural households. It replaces the earlier MGNREGA scheme, with a focus on employment generation and livelihood support in rural areas.

Key facts

in5points

  1. The VB-G RAM JI Act, 2025 came into force on 1 July 2026 across all states and union territories.

  2. Budget allocation for FY 2026-27 (July 1, 2026 to March 31, 2027) is ₹95,692.31 crore, the largest ever at budget estimate stage for any rural employment scheme.

  3. Criteria-based allocation of ₹95,692.31 crore has been done among states/UTs, and first installment of ₹25,844.97 crore has been released as original sanctions.

  4. No pending dues under the scheme as of the current date.

  5. The scheme provides statutory guarantee of 125 days of wage employment to every rural household whose adult members are willing to do unskilled manual work.

  6. Interim allocations and first installment releases have enabled timely wage payments to workers.

  7. The government monitors implementation through Management Information System (MIS), regular review meetings, and other mechanisms.

  8. Social audit and central administration funds are included in the total allocation (₹1,850.62 crore).

Prelims pointers

  • Scheme: Viksit Bharat - Rozgar aur Aajivika ke liye Guarantee Mission (Gramin) (VB-G RAM JI)
  • Act: VB-G RAM JI Act, 2025
  • Effective date: 1 July 2026
  • Budget allocation: ₹95,692.31 crore for FY 2026-27
  • First installment released: ₹25,844.97 crore
  • Guaranteed wage employment: 125 days per rural household
  • Ministry: Ministry of Rural Development
  • Monitoring: MIS, review meetings

Mains angles

  • Discuss the significance of statutory guarantee of 125 days of wage employment in rural areas.
  • Examine the budgetary allocation and its impact on rural employment and livelihood.
  • Critically analyze the implementation challenges and monitoring mechanisms of the scheme.
VB-G RAM JI Scheme: Funds Allocated, Largest Budget for Rural Employment — UPSC Schemes · in5points