Centre announces ₹95,692 crore interim allocation under VB-G RAM G

India's Centre has swiftly moved to ringfence rural livelihoods, announcing a substantial ₹95,692 crore interim allocation for its ambitious new Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) scheme. This preemptive measure, unveiled by Union Rural Development Minister Shivraj Singh Chouhan, is designed to avert any disruption in rural employment and development activities, particularly as the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) transitions to the new framework, set to fully roll out by July 1, 2026. The allocation ensures critical continuity for millions of rural households while the final rules for VB-G RAM G are still being ironed out. The interim funding comes as the government prepares to replace the two-decade-old MGNREGA with VB-G RAM G, a comprehensive statutory overhaul passed by Parliament in December 2025. Unlike its predecessor's 100% central wage bill funding, VB-G RAM G is structured as a Centrally Sponsored Scheme with a 60:40 fund-sharing ratio between the Centre and states for most regions, pushing states to shoulder a greater fiscal responsibility. This new architecture not only guarantees 125 days of wage employment per rural household—up from MGNREGA's 100 days—but also links employment directly to the creation of durable rural assets and infrastructure, reflecting a broader vision for rural economic transformation aligned with Viksit Bharat @2047. The allocation formula will eventually incorporate recommendations from the 16th Finance Commission for horizontal devolution, a shift from historical expenditure patterns. With the July 1 implementation deadline looming, states like Uttar Pradesh and West Bengal, receiving the highest interim shares of ₹9,721.48 crore and ₹8,508 crore respectively, are now tasked with ensuring seamless operational readiness. Union Minister Chouhan has stressed the imperative of zero work disruption and timely wage payments, calling for states to expedite e-KYC and Direct Benefit Transfer (DBT) preparedness, and to ready development projects under the new Act. A National Rural Development Conference later this month will convene stakeholders at the Pusa Institute to thrash out effective implementation strategies, setting the stage for a critical pivot in India's rural employment landscape.