VB-GRAMG Act 2025: New Rural Job Scheme Replaces MGNREGA from July 2026

May 12, 2026

Overview

The Indian government has passed a new law. It is called the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 or VB-GRAMG. This new law will replace the old MGNREGA from 1 July 2026. The new act gives more days of work to rural families. It also changes how money is shared between the Centre and states. The goal is to create better assets and fight climate change. This topic is very important for UPSC, SSC, and state exams.

What Is the VB-GRAMG Act?

VB-GRAMG stands for Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin). It is a new law for rural employment. It was passed by Parliament on 18-19 December 2025. The President gave his assent on 21 December 2025. The government notified it on 11 May 2026. The Act will come into effect from 1 July 2026.

What Happens to MGNREGA?

MGNREGA was the old law. It started in 2005. Its full name is Mahatma Gandhi National Rural Employment Guarantee Act. From 1 July 2026, VB-GRAMG will take its place. MGNREGA will no longer be in force across India.

How Does VB-GRAMG Work?

VB-GRAMG is a Centrally Sponsored Scheme. That means both the Centre and state governments share the cost. The funding ratio is:

60:40 for most states (Centre gives 60%, state gives 40%)
90:10 for North Eastern States, Himalayan States, and Union Territories (Centre gives 90%, state gives 10%)

What Is the New Employment Guarantee?

Under MGNREGA, a rural household got 100 days of paid work per year. Under VB-GRAMG, this increases to 125 days per year. The work is demand-based. If a family asks for work, the government must provide it.

What About Old Job Cards?

Many rural families have MGNREGA job cards. These cards are e-KYC verified. They will remain valid during the transition period. Later, new cards called Gramin Rozgar Guarantee Cards will be issued. Until then, old cards work.

What Is the Bigger Goal?

VB-GRAMG is not just about giving work. It aims to:

Create productive assets (like wells, ponds, roads)
Build climate resilience (prepare for floods, droughts)
Link with other government schemes
Support the Viksit Bharat @2047 vision. This is India's plan to become a developed nation by 2047, when India turns 100 years old.

How Much Money Will Be Spent?

The total yearly cost (including state shares) is expected to cross ₹1.51 lakh crore. For the year 2026-27, the Centre has already set aside about ₹95,700 crore.