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2 Feb 2026·Source: The Hindu
4 min
EconomyPolity & GovernanceSocial IssuesNEWS

₹95,000 Crore Boost for New Rural Employment Scheme

New rural employment scheme receives ₹95,000 crore boost, replacing MGNREGA.

The budget for rural employment schemes has seen a 43% hike. An allocation of ₹95,692.31 crore has been made for the new Vik sit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025. Additionally, ₹30,000 crore has been allocated for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). Together, the allocation for both rural employment schemes stands at ₹1,25,692.31 crore, compared with the Revised Estimate of ₹88,000 crore for the MGNREGS in 2025-26. Activists, however, believe the allocation is not expected to meet the government’s own target of providing 125 workdays to all workers enrolled under the MGNREGS, requiring an estimated ₹2.3 lakh crore. The VB-G RAM G Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. There are approximately 8.65 crore active job card holders who can demand work under the scheme. The new law has not yet been notified; once it is, State governments will have six months to roll out their version of the scheme. In the interim, the MGNREGS will continue. The budgetary allocation of ₹30,000 crore is intended to clear the last financial year’s liabilities and cover ongoing expenditure.

Key Facts

1.

VB-G RAM G Act allocation: ₹95,692.31 crore

2.

MGNREGS allocation: ₹30,000 crore

3.

Active job card holders: 8.65 crore

UPSC Exam Angles

1.

GS Paper 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

2.

Connects to the syllabus by addressing poverty, unemployment, and rural development.

3.

Potential question types include statement-based questions on the features and impact of the new scheme, and analytical questions on the challenges of rural employment generation.

Visual Insights

Key Statistics: Rural Employment Schemes

Dashboard highlighting key statistics related to the new rural employment scheme and MGNREGS.

VB-G RAM G Act Allocation
₹95,692.31 crore

Budget allocation for the new rural employment scheme, replacing MGNREGA.

MGNREGS Allocation
₹30,000 crore

Allocation to clear liabilities and cover ongoing expenditure under MGNREGS during the transition.

Total Allocation
₹1,25,692.31 crore

Combined allocation for rural employment schemes.

Active Job Card Holders
8.65 crore

Number of active job card holders who can demand work under the scheme.

More Information

Background

The concept of rural employment programs in India has evolved significantly since independence. Early initiatives focused on community development and infrastructure creation. The Community Development Programme (CDP) launched in 1952 aimed at holistic rural development but faced challenges in implementation and sustainability. Over time, the focus shifted towards targeted employment generation schemes. The National Rural Employment Programme (NREP) and the Rural Landless Employment Guarantee Programme (RLEGP) were introduced in the 1980s to provide wage employment to the rural poor. These programs were later merged into the Jawahar Rozgar Yojana (JRY) in 1989, which aimed at creating sustainable assets and providing employment opportunities. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, marked a paradigm shift by providing a legal guarantee of 100 days of wage employment to every rural household whose adult members volunteer to do unskilled manual work. This act aimed to enhance livelihood security in rural areas. The new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025 seeks to build upon this foundation.

Latest Developments

The allocation for rural employment schemes has seen fluctuations in recent years, reflecting changing priorities and economic conditions. While MGNREGA has been a cornerstone of rural employment, concerns have been raised about its effective implementation and the adequacy of funds. The introduction of the Vik sit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025 signals a shift in the government's approach towards rural employment. The new scheme aims to address the shortcomings of MGNREGA and provide more comprehensive livelihood opportunities. However, the success of the new scheme will depend on its effective implementation and the availability of adequate resources. Activists and experts have expressed concerns about whether the allocated funds are sufficient to meet the employment needs of rural households. The demand for work under MGNREGA has often exceeded the available resources, leading to delays in wage payments and unmet employment needs. The government's target of providing 125 workdays to all enrolled workers may require a significantly higher allocation than currently provided.

Frequently Asked Questions

1. What are the key facts about the new rural employment schemes (VB-G RAM G Act and MGNREGS) for UPSC Prelims?

Key facts include the ₹95,692.31 crore allocation for VB-G RAM G Act, the ₹30,000 crore allocation for MGNREGS, and the fact that these schemes aim to provide rural employment. Remember the allocation amounts as they are frequently tested.

Exam Tip

Focus on remembering the allocated amounts for each scheme and the full form of VB-G RAM G.

2. What is the Vik sit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025 and why is it important?

The VB–G RAM G Act, 2025 is a new rural employment scheme with an allocation of ₹95,692.31 crore. It is important because it replaces the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and aims to provide employment and livelihood opportunities in rural areas.

3. How does the Vik sit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025 differ from MGNREGS?

As per the topic data, the VB-G RAM G Act replaces the MGNREGS. The key difference lies in the allocation of funds, with ₹95,692.31 crore for VB-G RAM G Act and ₹30,000 crore for MGNREGS. The specific operational differences would be important to track as the new scheme is implemented.

4. What are the pros and cons of replacing MGNREGS with the Vik sit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025?

Pros may include a fresh approach to rural employment and potentially more efficient resource allocation. Cons may involve disruption of existing MGNREGS infrastructure and potential challenges in transitioning beneficiaries to the new scheme. Activists believe current allocations are insufficient to meet employment targets.

5. Why is the new rural employment scheme (VB–G RAM G Act) in the news recently?

The VB–G RAM G Act is in the news due to the significant allocation of ₹95,692.31 crore in the budget, marking a 43% hike in rural employment scheme funding. It's also newsworthy because it replaces the existing MGNREGS.

6. What are the important dates to remember related to rural employment schemes in India?

Remember 2005, the year the MGNREGA Act was established. While the VB-G RAM G Act is mentioned for 2025, focus on the historical context of MGNREGA for the exam.

7. What are the recent developments regarding the allocation of funds for rural employment?

The recent development is the allocation of ₹95,692.31 crore for the VB–G RAM G Act and ₹30,000 crore for MGNREGS. This represents a significant boost compared to the Revised Estimate of ₹88,000 crore for MGNREGS in 2025-26.

8. What is the historical background of rural employment programs in India?

Early initiatives like the Community Development Programme (CDP) in 1952 aimed at holistic rural development. Over time, the focus shifted towards targeted employment generation, eventually leading to programs like MGNREGA and now the VB-G RAM G Act.

9. How does the allocation for the VB–G RAM G Act and MGNREGS impact common citizens in rural areas?

The allocation aims to provide employment opportunities and livelihood security for rural citizens. Increased funding can lead to more workdays and better income for those enrolled in these schemes. However, activists argue that the current allocation is insufficient to meet the demand for 125 workdays per worker.

10. What are the important numbers to remember regarding the new rural employment schemes?

Remember ₹95,692.31 crore for VB-G RAM G Act allocation, ₹30,000 crore for MGNREGS allocation, and 8.65 crore active job card holders. These figures are important for Prelims and Mains exams.

Practice Questions (MCQs)

1. Consider the following statements regarding the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025: 1. It replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. 2. State governments will have six months to roll out their version of the scheme once the law is notified. 3. The budgetary allocation of ₹30,000 crore is intended to clear the previous financial year’s liabilities under VB-G RAM G. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The VB-G RAM G Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, as stated in the news summary. Statement 2 is CORRECT: State governments will have six months to roll out their version of the scheme once the law is notified, as mentioned in the news summary. Statement 3 is INCORRECT: The budgetary allocation of ₹30,000 crore is intended to clear the previous financial year’s liabilities under MGNREGS, not VB-G RAM G. The VB-G RAM G has a separate allocation of ₹95,692.31 crore.

2. With reference to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), consider the following statements: 1. It guarantees 100 days of wage employment in a financial year to rural households whose adult members volunteer to do unskilled manual work. 2. The scheme aims to enhance livelihood security in rural areas by providing wage employment opportunities. 3. The Ministry of Finance is responsible for the overall monitoring and implementation of the scheme. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: MGNREGS guarantees 100 days of wage employment in a financial year to rural households whose adult members volunteer to do unskilled manual work. This is a core feature of the scheme. Statement 2 is CORRECT: The scheme aims to enhance livelihood security in rural areas by providing wage employment opportunities, which is a primary objective of MGNREGS. Statement 3 is INCORRECT: The Ministry of Rural Development, not the Ministry of Finance, is responsible for the overall monitoring and implementation of the scheme.

3. Which of the following statements is NOT correct regarding the budgetary allocation for rural employment schemes as per the news? A) An allocation of ₹95,692.31 crore has been made for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025. B) ₹30,000 crore has been allocated for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). C) The total allocation for both rural employment schemes is ₹1,25,692.31 crore. D) The revised estimate for MGNREGS in 2023-24 was ₹98,000 crore.

  • A.An allocation of ₹95,692.31 crore has been made for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, 2025.
  • B.₹30,000 crore has been allocated for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
  • C.The total allocation for both rural employment schemes is ₹1,25,692.31 crore.
  • D.The revised estimate for MGNREGS in 2023-24 was ₹98,000 crore.
Show Answer

Answer: D

Options A, B, and C are correct as per the news summary. Option D is INCORRECT because the revised estimate of ₹88,000 crore was for MGNREGS in 2025-26, not 2023-24. The total allocation for both rural employment schemes is ₹1,25,692.31 crore, with ₹95,692.31 crore for VB–G RAM G and ₹30,000 crore for MGNREGS.

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