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    Home»Press Release»VB-GRAM G Act: A New Era for Rural Employment to Begin on July 1st
    Press Release

    VB-GRAM G Act: A New Era for Rural Employment to Begin on July 1st

    Rishabh SharmaBy Rishabh SharmaMay 11, 2026No Comments2 Mins Read
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    BHOPAL – Union Minister for Rural Development, Shri Shivraj Singh Chouhan, today announced the formal notification of the ‘Viksit Bharat – Guarantee for Employment and Livelihood Mission (Rural)’, or the VB–GRAM G Act. Terming it a “new dawn” for the rural workforce, the Minister confirmed that the legislation will replace existing frameworks to provide enhanced income security and infrastructure starting July 1, 2026.

    The Act is a central pillar of the government’s “Developed India” vision, shifting the focus from mere manual labor to sustainable livelihood generation and village transformation.


    Key Features of the VB–GRAM G Act

    The new legislation introduces several landmark changes to the rural employment landscape:

    • Increased Work Guarantee: The annual employment guarantee has been raised to 125 days per year, up from the previous 100-day limit under MGNREGA.

    • Massive Financial Outlay: A combined budget of over ₹1.51 lakh crore (₹95,000 crore from the Centre and the remainder from States) has been earmarked for the mission.

    • Payment & Compensation Security: * Wages will be paid via Direct Benefit Transfer (DBT) within a target of 3 days (maximum 15 days).

      • Compulsory delayed payment compensation will be awarded if funds are not disbursed within the 15-day window.

      • An unemployment allowance must be paid to laborers if the government fails to provide work upon request.

    Focus on Infrastructure & Livelihoods

    Unlike previous schemes, VB-GRAM G emphasizes high-utility rural assets:

    • Village Infrastructure: Massive scaling of water conservation, roads, bridges, schools, and Anganwadi buildings.

    • Empowering SHGs and FPOs: Construction of working sheds for women in Self-Help Groups and infrastructure for Farmer Producer Organizations.

    • Disaster Resilience: Special provisions for retaining walls in flood-prone or riverside villages.

    • Administrative Efficiency: The administrative expenditure cap has been increased from 6% to 9% to ensure smoother implementation and timely technical support.

    The Transition Phase

    Minister Chouhan clarified that until the Act officially comes into force on July 1st, all current works and provisions under MGNREGA will remain active. States have been given a six-month window to finalize their specific rules, but the Minister assured that no laborer would be deprived of work during this transition.

    “This is not just about employment; it is about empowering the trinity of workers, farmers, and villages. It is the foundation of a Developed India.” — Shri Shivraj Singh Chouhan

    Shivraj Singh Chouhan
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    Rishabh Sharma

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