The Centre on Sunday released the first installment of ₹25,863 crore to states and Union Territories for the implementation of the Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G-RAM-G), as Union Rural Development Minister Shivraj Singh Chouhan reviewed the nationwide rollout of the flagship rural employment scheme.
The funds, released as the Mother Sanction, are aimed at ensuring timely wage payments and smooth implementation of the scheme, which replaced MGNREGA from July 1, 2026.
Nationwide rollout begins smoothly
During a video conference with Rural Development Ministers of states and Union Territories, Chouhan said the government had resolved to implement VB-G-RAM-G across the country without disruption from July 1 and expressed satisfaction over its successful rollout.
He said the transition from MGNREGA to VB-G-RAM-G had been smooth and seamless, with no technical or operational issues reported so far.
“The government’s objective is to ensure dignified employment, timely wage payments and the creation of durable rural assets for rural workers,” he said, adding that serving poor workers was akin to serving God.
Scheme rolled out across India in a single day
Highlighting the scale of implementation, Chouhan said that while MGNREGA had taken nearly three years to cover the entire country, VB-G-RAM-G was rolled out nationwide in a single day.
He attributed the achievement to the leadership of Prime Minister Narendra Modi, cooperation from state governments and the country’s administrative capacity, describing it as a reflection of effective governance and coordination.
Employment generation gathers pace
Reviewing the first week of implementation, the minister said work had commenced in a large number of Gram Panchayats and employment had already been provided to lakhs of rural workers.
He commended Andhra Pradesh, Kerala and Rajasthan for generating a significant number of employment opportunities on the very first day of implementation.
At the same time, he urged Odisha and West Bengal to operationalise the scheme in the remaining Gram Panchayats at the earliest, while requesting Jharkhand to notify the scheme and make the required budgetary provisions. States with pending RBI account-related formalities were also asked to complete the process in a time-bound manner.
Wage rates increased
Chouhan said wage rates under VB-G-RAM-G have been increased by around 10% on average, ensuring that no state now has a wage rate below ₹300 per day.
He said the move reflects the government’s commitment to strengthening the income and social security of rural workers.
Funds to ensure timely wage payments
The minister said the ₹25,863 crore released in the first installment would enable states to pay wages within 15 days. He urged state governments to promptly release their matching share to avoid any delays in payments.
He also assured states that there would be no shortage of funds for effective implementation of the scheme, adding that the first installment had been released based on the funding requirements submitted by states.
Chouhan said Gram Sabhas and Gram Panchayats should identify and prioritise development works based on local needs to ensure inclusive and participatory rural development.
Focus on transparency
Emphasising transparency and accountability, the minister directed states to fully implement face authentication, geo-tagging and other technology-driven monitoring measures.
He said the government would not tolerate irregularities or fraud and remained committed to ensuring transparency, credibility and the creation of quality rural assets.
Chouhan also said the Rural Development Ministry has deployed Area Officers led by Joint Secretary-level officials to maintain regular coordination with states and facilitate quick resolution of implementation-related issues.
Reiterating the importance of timely wage payments, he said both the Centre and state governments share responsibility for ensuring workers receive wages within the prescribed timeframe. While the Centre has released the first installment on schedule, he said states must also release their contribution without delay.