India replaces MGNREGS with new rural jobs scheme from July 1

New Delhi: After nearly two decades, India will replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) with a new rural jobs programme, aligning the overhaul with its goal of becoming a developed nation by 2047.

Hours before the proposed July 1 rollout of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission-Gramin (VB-G RAM-G), the rural development ministry on Tuesday stipulated an interim arrangement for those few states that are yet to issue necessary notification to adopt the new scheme. These states can temporarily continue with their extant programme but with suitable modifications, aligning it with the new scheme's provisions.

The interim arrangement is meant to shield beneficiaries from any inconvenience.


About two dozen states and UTs have so far issued necessary notifications to roll out the VB-G RAM-G scheme. As many as 29 states and Union territories had made budgetary provisions for the new scheme.

The Centre has announced state-wise allocations under its FY27 budgetary outlay of ₹ 95,692 crore for the new scheme. Including the states' share, the total allocation for VB-G RAM-G will exceed ₹1.5 lakh crore in FY27. The new scheme guarantees 125 days of employment in a fiscal year to every rural household whose adult members volunteer to undertake unskilled manual work, up from 100 days under MGNREGS.