G-RAM-G Act generates 9.69 crore person-days in 1st month after MGNREGA repeal: Govt
The Centre told the Lok Sabha on Tuesday that more than 9.69 crore person-days of work have been generated within a month of the launch
The Centre told the Lok Sabha on Tuesday that more than 9.69 crore person-days of work have been generated within a month of the launch of the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) Act, 2025, or VB-GRAM-G, which replaced MGNREGA from July 1. In a written reply, Rural Development Minister Shivraj Singh Chouhan said the new law is now in force in rural areas across the country and all states and Union territories have notified the scheme and started works under it. He said the transition from MGNREGA had been smooth and that willing rural households were being given work under the provisions of the Act. Read Full Story Chouhan said the Mahatma Gandhi Rural Employment Guarantee Act, 2005, stands repealed from July 1. He said, "The transition from MGNREGA to VB-GRAM-G has been smooth, seamless and worker-centric. Over 9.69 crore person days have been generated in approximately within a month of the rollout of VB-GRAM-G Act." Under the new law, every rural household whose adult members volunteer to do unskilled manual work is entitled to a statutory guarantee of 125 days of wage employment in a financial year, up from 100 days under MGNREGA.
Replying to questions from Congress MPs Vijayakumar and Manickam Tagore on concerns raised by some state governments over the financial structure of the scheme, including the shifting of up to 40 per cent of the burden to states compared with MGNREGA, Chouhan said the Centre was in regular touch with states and Union Territories. "Suggestions given and concerns raised by the states/UTs during various review meetings and through written communications have duly been noted by the Ministry," he said. He said the fund-sharing pattern under VB-GRAM-G is 90:10 for the northeastern states, Himalayan states and the Union Territory of Jammu and Kashmir, including Uttarakhand and Himachal Pradesh, and 60:40 for all other states and Union territories with legislature. Chouhan said, "Here, it is stated that, historically, most of the major rural employment schemes in the country have operated on shared funding models between the Centre and the States. Further, presently, almost all Centrally Schemes (CSS) across sectors are being implemented on the 60:40 sharing model.
The 60:40 pattern adopted under this Act is therefore consistent with the broader framework of CSS." Under MGNREGA, the Centre bore 100 per cent of the wage cost and 75 per cent of the material cost. The minister said Rs 95,692.31 crore has been provided in the current financial year as the Centre's share for VB-GRAM-G, which he described as one of the largest budget estimates for any rural employment programme in the country. He said that with the estimated state contribution, the total programme outlay is likely to cross Rs 1.51 lakh crore. He added that first instalment sanctions worth Rs 25,844.97 crore have already been issued to states and Union territories, and all of them have reported making budget provisions for their matching share. On whether there was formal consultation with states, the parliamentary standing committee or other stakeholders before the new law was introduced, Chouhan said several operational gaps in MGNREGA had been identified during review meetings with stakeholders. He said the Standing Committee on Rural Development and Panchayati Raj had, in various meetings, recommended increasing permissible work days, revising wage rates, and strengthening transparency as well as technological and administrative mechanisms.
The BriefWire