India Allocates ₹95,962 Crore for New Rural Employment Scheme VB-GRAM G

India's Union Rural Development Minister announced an interim allocation of ₹95,962 crore for the Vikshit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-GRAM G), a new rural employment scheme replacing MGNREGS. The combined outlay including state contributions will reach ₹1.25 lakh crore, with the allocation made before finalizing scheme rules to ensure a seamless transition without gaps in worker employment. The move aims to expand the employment scheme's presence in economically weaker states while maintaining funding levels for all states.
India's Union Rural Development Minister Shivraj Singh Chouhan announced on June 9, 2026, an interim allocation of ₹95,962 crore for VB-GRAM G, a new rural employment guarantee scheme designed to replace the existing MGNREGS. The total combined outlay, including mandatory state contributions of approximately 40%, will reach ₹1.25 lakh crore. The allocation was made before finalizing the scheme's rules and distribution formula to ensure continuity, with the minister pledging no gap in work availability for rural workers. Uttar Pradesh received the highest interim allocation at ₹9,721.48 crore, followed by West Bengal, Andhra Pradesh, Tamil Nadu, Rajasthan, and Bihar. Twenty-six states have completed procedural requirements for implementation, while four states—Jharkhand, Karnataka, Telangana, and Mizoram—are still preparing. The final distribution formula, expected by July 1, will use the 16th Finance Commission's horizontal devolution approach to potentially increase allocations to economically weaker states, which may alter future state shares.
What's missing
The article does not explain the specific differences between MGNREGS and VB-GRAM G in terms of employment guarantee scope, wage rates, or implementation mechanisms. Additionally, there is no information on the timeline for full scheme rollout or details on how the scheme addresses criticisms of MGNREGS performance.
What different sources said
- The HinduCenter
₹95,962 crore set aside for VB-G RAM G
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