The Centre has notified the implementation of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-GRAMG), replacing MGNREGA from July 1, 2026.
The new law guarantees every eligible rural household up to 125 days of paid unskilled manual work in a financial year, an increase of 25 days over MGNREGA’s 100-day provision. The Ministry of Rural Development issued the notification on Monday, giving legal force to the framework.
VB-GRAMG changes the way funds are allocated. Under MGNREGA, states submitted annual work plans based on demand, and the Centre released funds accordingly. The new law introduces state-wise normative allocations, setting fixed ceilings for expenditure. Any spending beyond these limits must be borne by the states. The Centre will share costs with states in a 60:40 ratio, with higher support for northeastern and Himalayan states and full funding for Union Territories. The total annual outlay is estimated at Rs 1.51 lakh crore, with the Centre contributing about Rs 95,700 crore.
All projects must originate from Viksit Gram Panchayat Plans and link to the Viksit Bharat National Rural Infrastructure Stack, tying village-level work to national infrastructure planning. Labourers must execute the work directly, with contractors barred and machines discouraged. At least 60% of spending must go to wages, with priority for SC, ST, women-headed households, and persons with disabilities in individual asset creation.
The law retains the provision for unemployment allowance if work is not provided within 15 days of application, with stronger accountability mechanisms. Social audits will occur twice a year, supported by GPS-based monitoring and digital attendance systems. Administrative expenditure ceilings rise from 6% to 9%.
