Replaces: Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) – enacted 2005
Effective from: 1 July 2026
Notified on: 11 May 2026
Presidential assent: 21 December 2025
Passed in Parliament: 18-19 December 2025
New employment guarantee: 125 days per year (up from 100 days)
Scheme type: Centrally Sponsored Scheme
Funding ratio for most states: 60:40 (Centre:State)
Funding ratio for North Eastern, Himalayan States, UTs: 90:10
Old MGNREGA job cards: Valid until new Gramin Rozgar Guarantee Cards issued
Linked vision: Viksit Bharat @2047
Estimated annual outlay: ₹1.51 lakh crore (including state share)
Centre's allocation for 2026-27: ₹95,700 crore
FAQ
Q1: When will MGNREGA stop completely?
A: MGNREGA will stop on 1 July 2026. From that day, VB-GRAMG Act will apply.
Q2: Will rural families get more work days under the new law?
A: Yes. Earlier they got 100 days. Now they will get 125 days of guaranteed wage employment per year.
Q3: What is the funding share for a state like Uttarakhand?
A: Uttarakhand is a Himalayan state. So it will get a 90:10 ratio. Centre gives 90%, state gives 10%.
Q4: Do I need a new job card after July 2026?
A: Not immediately. Your old e-KYC verified MGNREGA job card will work until the government issues a new Gramin Rozgar Guarantee Card.
Q5: Is VB-GRAMG only about giving money for digging roads?
A: No. It also focuses on building useful assets like water harvesting structures and making farms climate-resilient.
Month: Current Affairs - May 12, 2026
Category: MGNREGAReplacement