VB-GRAM G Scheme

Why in News?

The Union Government has announced an interim allocation of ₹95,692 crore for the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-GRAM G) to facilitate a smooth transition from MGNREGS. The scheme will come into force from 1 July 2026 and will become India’s primary rural employment guarantee programme.

What is VB-GRAM G?

VB-GRAM G (Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin) is a rural employment and livelihood scheme that replaces the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

The scheme aims to combine:

• Rural employment security
• Livelihood enhancement
• Rural infrastructure creation
• Climate-resilient development
• Spatially planned asset creation

Key Features of VB-GRAM G

Enhanced Employment Guarantee

Feature	MGNREGS	VB-GRAM G
Guaranteed Employment	100 Days	125 Days
Wage Payment Timeline	Varies	Within 15 Days
Focus	Employment	Employment + Livelihood + Infrastructure

• Every rural household whose adult members volunteer for unskilled manual work will be entitled to 125 days of wage employment annually.

60-Day Agricultural Pause

• States can declare a combined 60-day no-work period during peak sowing and harvesting seasons.
• Objective:
  • Prevent shortage of agricultural labour.
  • Balance farm productivity and employment generation.

Viksit Bharat National Rural Infrastructure Stack

The scheme links employment generation with the creation of durable rural assets such as:

• Water conservation structures
• Irrigation facilities
• Rural roads and connectivity
• Livelihood infrastructure
• Climate-resilient projects

New Funding Framework

One of the biggest changes is the shift from demand-driven funding to a normative allocation model.

Cost Sharing Pattern

Category	Centre	State
General States	60%	40%
Northeastern & Himalayan States	90%	10%
UTs without Legislature	100%	Nil

Allocation Formula

The draft rules propose using the 16th Finance Commission’s horizontal devolution criteria.

Major Weightages

Parameter	Weight
GSDP Distance	42.5%
Population	17.5%
Other Indicators	10% each

The formula prioritizes poorer states by assigning the highest weight to GSDP Distance, which measures the gap between a state’s per-capita income and that of the wealthiest states.

Performance-Linked Funding

From the second year onwards, part of the Central allocation will depend on state performance.

Performance Indicators

• Timely wage payments
• Social audit compliance
• Completion of public works
• Transparency and accountability standards

This aims to improve efficiency and outcomes.

Governance Structure of VB-GRAM G Scheme

National Level Steering Committee

• 16-member committee.
• Chaired by the Union Rural Development Secretary.
• Includes:
  • Representatives from States
  • NITI Aayog
  • Relevant Ministries

Central Gramin Rozgar Guarantee (GRG) Council

• Headed by the Union Minister for Rural Development.
• Advises the Government on implementation and policy issues.

Decentralised Planning

VB-GRAM G emphasizes scientific and technology-based planning.

Spatial Planning Tools

Yuktdhara Portal

• GIS-based planning platform.
• Developed for natural resource management and rural asset planning.

PM Gati Shakti

• National infrastructure planning platform.
• Integration will improve project selection and coordination.

Viksit Gram Panchayat Plans

Every Gram Panchayat will prepare local development plans based on:

• Resource mapping
• Infrastructure needs
• Livelihood opportunities
• Climate resilience requirements

Transition from MGNREGS

Job Cards

• Existing e-KYC verified MGNREGS Job Cards will remain valid temporarily.
• New Gramin Rozgar Guarantee Cards will be issued during the transition.

Significance of VB-GRAM G

Rural Employment Security

• Increases guaranteed employment from 100 to 125 days.

Infrastructure Creation

• Focuses on durable assets rather than temporary works.

Climate Resilience

• Promotes water conservation and climate adaptation projects.

Better Fiscal Management

• Introduces objective allocation criteria and accountability mechanisms.

Technology-Driven Governance

• Integrates GIS planning and digital monitoring systems.

Related Institutions and Initiatives

Ministry of Rural Development

• Nodal ministry for implementation.

16th Finance Commission

• Recommended horizontal devolution criteria forming the basis of allocations.

PM Gati Shakti National Master Plan

• Integrated infrastructure planning framework.

Yuktdhara Portal

• GIS-based planning platform for MGNREGS and natural resource management.