Employment guarantee has slipped into limbo
VB-G RAM G was sold as an expansion of MGNREGA, but it has actually driven employment guarantee into the ditch
The Union Government's modification of India's employment guarantee law, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), has led to an unexpected drop in employment generation. The new law, Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G), replaced MGNREGA on July 1, 2026, but the transition has been fraught with issues.
July 2026 saw a 50% decline in employment generation compared to July 2025 under MGNREGA, a significant setback. The Ministry of Rural Development attempted to blame this on a few states suspending VB-G RAM G under Section 6 of the Act, but this is an oversimplification. The decline began before the official transition and was ongoing even after the launch of VB-G RAM G. The lack of final Rules for VB-G RAM G and confusion over wage rates added to the turmoil.
Employment generation under MGNREGA and VB-G RAM G was only 70 crore person-days in the first quarter of 2026-27, a 43% drop from the average of the previous two years. This decline affected most major states, with some experiencing drops of over 60%. The high budget allocation for VB-G RAM G, combined with unchanged wages in real terms, was expected to boost employment, but instead, it has resulted in an unprecedented crisis.
Concerns about wage payments and the potential shortfall in the projected VB-G RAM G budget add to the uncertainty.
Written by urgent.news from The Hindu's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
