The Union Budget 2026 for rural employment schemes increased by 43%. It allocates ₹95,692.31 crore for the new rural employment scheme under the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, along with ₹30,000 crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
VB-G RAM G Allocated ₹95,692.31 Cr in Union Budget 2026
In total, the funding for both rural employment schemes is ₹1,25,692.31 crore. This is compared to the Revised Estimate of ₹88,000 crore for the MGNREGA in 2025-26. However, activists say this amount expected to meet the government’s own goal of providing 125 workdays to all workers enrolled in the MGNREGS. To fulfill this commitment, the government would need to allocate ₹2.30 lakh crore.
VB-G RAM G Act replaces MGNREGA
The VB-G RAM G Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. Under the new law, any rural household that wants unskilled manual work can register and seek jobs. There are about 8.65 crore active job card holders who can request work through the scheme.
“If all active job card holders receive 125 days of employment, and the average cost per person per day is ₹355, the total expenditure needed would ₹3,83,844 crore. With a 60:40 cost-sharing ratio, the Government of India’s share around ₹2.30 lakh crore, while the remaining portion covered by the states.
The new law not notified yet; once it is, state governments have six months to implement their version of the scheme. Meanwhile, the MGNREGA will stay in effect. The Union Budget 2026 allocates ₹30,000 crore aims to clear liabilities from the last financial year and support ongoing expenses.
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