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Centre Publishes Draft Rules to Roll Out VB‑G RAM G Replacing MGNREGA

Shifting to Centre-set normative allocations will require states to share costs, altering how rural employment entitlements are funded and delivered.

Overview

  • The Ministry of Rural Development published draft VB‑G RAM G implementing rules on Saturday, May 23, 2026, and opened a 30-day public consultation with comments due by June 21 ahead of a planned July 1 rollout.
  • The rules formalise a normative allocation system that uses the 16th Finance Commission’s six-parameter formula to set each State’s annual funding ceiling rather than continuing demand-based central funding.
  • Cost sharing changes move much of the wage, material and admin burden to states under a 60:40 split for most states and 90:10 for northeastern and Himalayan states, with the Centre projecting its 2026–27 share at about Rs 95,692.31 crore.
  • Operational and worker protections in the draft include continuity of ongoing MGNREGA works, temporary validity of e‑KYC job cards, weekly wage payment timelines, a digital multi‑tier grievance system, and eligibility for unemployment allowance if employment is not provided within 15 days.
  • Political and sector responses are sharply divided: Opposition parties and some civil society groups warn the change weakens the original rights-based, demand-driven guarantee while the Centre says new oversight bodies and performance-linked allocation will improve planning, transparency and asset creation.