India, Dec 29 : India’s flagship rural employment scheme is set for a major overhaul with the introduction of VB-G RAM G, a reimagined framework designed to transform the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) into a more outcome oriented, transparent, and participatory programme, according to a new report by SBI Research.
The redesigned scheme aims to tackle long-standing structural weaknesses in MGNREGA by focusing on productive asset creation, better project selection, income generation, and stronger monitoring mechanisms. At its core is a “jan bhagidari” (people’s participation) model, placing Gram Panchayats at the centre of planning, execution, and accountability.
Under VB-G RAM G, guaranteed workdays are proposed to increase from 100 to 125, with permissible works streamlined into four categories: water security, core rural infrastructure, livelihood infrastructure, and climate-resilient assets. The programme also introduces a 60-day pause during peak agricultural seasons to align employment with local economic cycles.
The fiscal commitment from the Centre is expected to rise to nearly Rs 96,000 crore by FY27. The Centre-State funding ratio will be revised to 60:40, while normative fund allocations based on objective criteria could collectively benefit states by around Rs 17,000 crore, according to SBI.
Governance reforms include biometric authentication, spatial technology based planning, digital monitoring, weekly public disclosures, and strengthened social audits, all aimed at curbing leakages and improving efficiency. Misappropriation under MGNREGA since FY16 totaled about Rs 292 crore a gap the new framework seeks to significantly reduce.
VB-G RAM G is also expected to boost social inclusion, with women accounting for 58% of total person days and Scheduled Castes and Tribes contributing nearly 38%. By integrating employment generation with durable asset creation, digital governance, and grassroots participation, the scheme represents a decisive shift toward results oriented rural development and sustainable growth.