The Andhra Pradesh Cabinet officially approved the implementation of the Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin) – VB-G RAM G in the state, effective July 1, 2026. This scheme replaces the two-decade-old MGNREGA program and is critical for UPSC, APPSC, and TGPSC Prelims from the perspectives of rural employment, social security, and cooperative federalism.
Why in News
Andhra Pradesh became one of the early states to officially approve the nationwide rollout of VB-G RAM G, which repeals and replaces MGNREGA effective July 1, 2026. The scheme enhances employment guarantees and restructures funding between the Centre and States.
What is VB-G RAM G?
Full Form: Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin)
- A Centrally Sponsored Scheme that replaces MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act, 2005)
- Effective date in AP: July 1, 2026
- Objective: Enhance rural employment, create durable public assets, and ensure livelihood security
Key Features of VB-G RAM G
- Enhanced Employment Guarantee: Increased from 100 days (MGNREGA) → 125 days per financial year per rural household
- Work Provision Timeline: Local administration must provide employment within 15 days of application
- Four Infrastructure Verticals: Employment strictly integrated with creating durable public assets in — (1) Water security, (2) Core rural infrastructure, (3) Livelihood infrastructure, (4) Extreme weather mitigation
- Agricultural Safeguard Pause: State governments can notify a collective 60-day no-work period during peak sowing and harvesting seasons to avoid farm labour shortages
- Unemployment Allowance: If work is not provided within 15 days — minimum 1/4th of wage rate for the first 30 days, and 1/2 of wage rate for the remaining period, paid from the state’s own budget
- Delay Compensation: Wages must be credited weekly or within 15 days of closing muster roll. Delay beyond 16th day = compensation at 0.05% of unpaid wages per day
Funding Pattern
| Category | Centre : State Ratio |
|---|---|
| General States | 60 : 40 |
| North-Eastern & Himalayan States | 90 : 10 |
| Union Territories (without legislature) | 100% Central funding |
MGNREGA vs VB-G RAM G
| Parameter | MGNREGA | VB-G RAM G |
|---|---|---|
| Employment Guarantee | 100 days/year | 125 days/year |
| Work within | 15 days | 15 days |
| Agricultural Pause | Not specified | 60-day collective pause |
| Unemployment Allowance | Available | 1/4th (1-30 days), 1/2 (beyond) |
| Delay Compensation | 0.5% per day | 0.05% per day (from Day 16) |
| Funding (General States) | Varies by component | 60:40 (Centre:State) |
| Enacted | 2005 (over 20 years old) | 2026 (replaces MGNREGA) |
Static/Exam Connections
- Article 41 (DPSP): The State shall make effective provision for securing the right to work — legal basis for employment guarantee schemes
- Article 43 (DPSP): State shall endeavour to secure a living wage and decent standard of life for workers
- Centrally Sponsored Schemes (CSS): Funded jointly by Centre and States; implemented by states as per national guidelines
- MGNREGA (2005): Was renamed from NREG Act to MGNREGA in 2009 in honour of Mahatma Gandhi; now repealed by VB-G RAM G
- Finance Commission: Determines Centre-State fiscal transfers; CSS funding follows separate norms
- Cooperative Federalism: The 60:40 funding ratio reflects greater financial responsibility on states vs MGNREGA’s earlier norms
Quick Revision Table
| Feature | Key Fact |
|---|---|
| Scheme replaces | MGNREGA (2005) |
| Employment guarantee | 125 days/year |
| Work provision deadline | 15 days from application |
| Agricultural no-work pause | 60 days (state notified) |
| Unemployment allowance (first 30 days) | Minimum 1/4th of wage |
| Unemployment allowance (beyond 30 days) | Minimum 1/2 of wage |
| Delay compensation | 0.05% per day from Day 16 |
| Funding – General States | 60:40 (Centre:State) |
| Funding – NE/Himalayan States | 90:10 |
| Funding – UTs (no legislature) | 100% Central |
| AP effective date | July 1, 2026 |
Trap / Confusing Points
| Common Confusion | Correct Fact |
|---|---|
| VB-G RAM G supplements MGNREGA | It REPLACES (repeals) MGNREGA entirely |
| Employment guarantee = 100 days | VB-G RAM G guarantees 125 days (MGNREGA was 100 days) |
| Unemployment allowance from state = Centre-funded | Unemployment allowance is paid from the STATE’s own budget |
| Delay compensation = 0.5% per day | It is 0.05% per day (not 0.5%); kicks in from the 16th day |
| General States funding = 90:10 | 90:10 is for NE and Himalayan States only; General States = 60:40 |
Practice MCQs
1. VB-G RAM G replaces which existing rural employment scheme?
a. PM Kisan Samman Nidhi
b. PMEGP
c. MGNREGA
d. PMAY-G
Ans: C
VB-G RAM G (Viksit Bharat Guarantee for Rozgar and Aajeevika Mission Gramin) replaces MGNREGA (2005). PMAY-G is a housing scheme; PM Kisan is an income support scheme; PMEGP is an employment generation scheme.
2. Under VB-G RAM G, how many days of employment are guaranteed per rural household per year?
a. 100 days
b. 150 days
c. 125 days
d. 200 days
Ans: C
VB-G RAM G enhances the employment guarantee from MGNREGA’s 100 days to 125 days per financial year per rural household.
3. Under VB-G RAM G, what is the maximum number of days within which employment must be provided after a worker’s application?
a. 7 days
b. 10 days
c. 15 days
d. 30 days
Ans: C
Local administration must provide employment within 15 days. Failure triggers mandatory unemployment allowance paid from the state’s own budget.
4. Under VB-G RAM G, what is the Centre-State cost-sharing ratio for General States?
a. 75:25
b. 80:20
c. 60:40
d. 90:10
Ans: C
General States follow a 60:40 ratio (Centre:State). NE and Himalayan states get enhanced support at 90:10. UTs without legislature receive 100% central funding.
5. Under VB-G RAM G, delay compensation for late wage payment is charged at:
a. 0.5% per day from the 11th day
b. 0.05% per day after the 16th day
c. 0.1% per day from the 15th day
d. 1% per week after the 7th day
Ans: B
If wages are not credited within 15 days, states must pay compensation at 0.05% of unpaid wages per day from the 16th day onward. Note: 0.05%, NOT 0.5%.
To learn current affairs from exam point of view, Click here
To know more about VB-G RAM G and its implementation, Click here
