Why are states against VB-G RAM G | Explained

At least three states – Madhya Pradesh, Bihar and Jharkhand – have questioned the shift in the financial model, which now requires most states to bear 40% of the total expenditure, unlike MGNREGA, where the Center bore 100% of the labor costs and states had to pay only part of the material bill, which was only 10% of the total budget. File | Photo credit: The Hindu

Story so far: The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) will become operational on July 1, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The Union Ministry of Rural Development announced the draft rules for the new employment regime on May 22 and gave stakeholders a month to submit their feedback.

VB-G RAM G marks a shift from a “demand-driven framework” to a “supply-driven system.” Under the new system, allocations will be capped within a fixed budget set by the Union government based on “objective parameters”.

Published – 29 Jun 2026 11:41 IST