Rural Development Reviews Preparedness for Rollout of VB–G RAM G Act 2025

The Ministry additionally instructed States to adopt a focused approach for timely completion of ongoing works under Mahatma Gandhi NREGS before the commencement of the revised framework.

The Ministry of Rural Development has intensified preparations for the nationwide rollout of the VB–G RAM G Act, 2025, which is set to replace the existing Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) framework from July 1, 2026. A high-level review meeting chaired by Shri Rohit Kansal, Secretary, Department of Rural Development (DoRD), was held to assess the readiness of States and Union Territories for the transition to the revised rural employment and livelihood framework.

The meeting witnessed participation from senior officials of the Ministry of Rural Development along with representatives from various States and Union Territories. Discussions focused on ensuring seamless operationalisation of the new framework while maintaining continuity of employment generation in rural areas during the transition phase.

During the review, Secretary Rohit Kansal assessed the status of preparatory measures being undertaken by States and UTs for shifting from the Mahatma Gandhi NREGS system to the new VB–G RAM G framework. States were advised to complete all critical administrative, financial, technical, and institutional arrangements within prescribed timelines to ensure smooth implementation of the Act immediately after its commencement on July 1.

The preparatory activities reviewed included notification of State-level VB–G RAM G Schemes, formulation of State-specific rules under the Act, and technical integration of systems such as DBT-SPARSH and SNA-SPARSH. States were also instructed to prepare an adequate "shelf of works" through the Yuktdhara portal using a participatory planning model involving Gram Sabhas to ensure local-level development priorities are properly reflected in implementation planning.

Officials further discussed the need for States and UTs to make timely budgetary provisions and ensure sufficient financial allocations for implementation of the new framework from July onward. Special emphasis was placed on reconciliation and settlement of pending liabilities under Mahatma Gandhi NREGS to facilitate a smooth financial and operational transition into the new system.

Addressing the meeting, Shri Rohit Kansal described the transition from Mahatma Gandhi NREGS to VB–G RAM G as a major structural reform in India's rural employment and livelihood architecture. He stressed that the scale of the transition requires close coordination between the Central Government, States, Union Territories, and technical implementation teams.

The Secretary also informed States and UTs about various preparatory steps already undertaken by the Central Government to operationalise the VB–G RAM G Act, 2025. An interim list of permissible works under the new framework has already been circulated among States for feedback and suggestions. States have additionally been invited to recommend further works based on local developmental requirements for possible inclusion under Schedule I of the Act.

The Ministry also announced that draft rules under the VB–G RAM G Act were officially issued on May 22, 2026, and published in the e-Gazette for public consultation over a 30-day period prior to finalisation. These draft rules cover multiple aspects of implementation, governance, and financial management under the new framework.

Among the draft rules released are:

• VB–G RAM G Central Gramin Rozgar Guarantee Council Rules, 2026

• VB–G RAM G Manner of Payment of Wages and Unemployment Allowance Rules, 2026

• VB–G RAM G National Level Steering Committee Rules, 2026

• VB–G RAM G Grievance Redressal Rules, 2026

• VB–G RAM G Administrative Expenses Rules, 2026

• Transitional Provisions under VB–G RAM G Rules, 2026

• VB–G RAM G Objective Parameters for Normative Allocation Rules, 2026

The Ministry further shared an indicative framework for categorising Gram Panchayats into A, B, and C categories to improve planning and implementation efficiency under the revised system. States and UTs were informed that they may adapt the categorisation criteria according to their specific local requirements and administrative needs.

Officials stated that weekly consultative meetings and review sessions are being conducted with States and Union Territories to provide technical assistance, review preparedness levels, address implementation challenges, and ensure coordinated transition to the new employment framework.

Importantly, the Ministry clarified that work under the existing Mahatma Gandhi NREGS framework will continue uninterrupted until the official commencement of the VB–G RAM G Act on July 1, 2026. To ensure continuity of employment generation during this period, adequate Labour Budgets for June 2026 have already been approved for all States and UTs based on projected demand.

The Secretary also informed the States that "mother sanctions" amounting to ₹26,971 crore have been issued under Mahatma Gandhi NREGS for wage payments, material costs, administrative expenses, and Social Audit Unit components. The release is aimed at ensuring uninterrupted flow of funds and smooth continuation of ongoing works during the transition period.

States and UTs were advised to ensure timely utilisation of available funds, maintain adequate availability of works at the grassroots level, and honour all genuine demands for employment, especially during the agricultural lean season when rural employment demand typically rises.

The Ministry additionally instructed States to adopt a focused approach for timely completion of ongoing works under Mahatma Gandhi NREGS before the commencement of the revised framework. At the same time, officials clarified that projects continuing beyond June 30, 2026, would be transitioned into the VB–G RAM G framework while maintaining consistency with the new provisions and operational norms.

Shri Rohit Kansal reiterated that the Ministry of Rural Development remains fully committed to supporting States and Union Territories throughout the transition process and ensuring successful operationalisation of the enhanced rural employment and livelihood system across India.

Policy experts believe the rollout of the VB–G RAM G Act could mark one of the most significant reforms in rural employment governance since the launch of MGNREGS, with greater emphasis expected on technology integration, transparency, participatory planning, and improved delivery systems for rural households.