India allocates funds for VB-G RAM G
Analysis based on 7 articles · First reported Jun 09, 2026 · Last updated Jun 10, 2026
The interim allocation of 95,692 crore rupees for the VB-G RAM G scheme by India>>> is expected to ensure continued rural employment and development activities, positively impacting the rural economy and related sectors. This transition from MGNREGA aims to maintain stability in rural income and infrastructure development, which can have a ripple effect on consumer spending and demand in rural areas. The assurance by Shivraj Singh Chouhan>>> that no state will face fund reductions helps mitigate uncertainty for states like India — Uttar Pradesh>>> and India — West Bengal>>>.
The government of India>>>, through Union Rural Development Minister Shivraj Singh Chouhan>>>, announced an interim allocation of 95,692 crore rupees under the new Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Grameen) (VB-G RAM G) scheme. This scheme is set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from July 1, 2026, ensuring uninterrupted rural employment and development activities. The total allocation, including the existing MGNREGA funds, amounts to over 1.25 lakh crore rupees, with a projected annual outlay of 1.51 lakh crore rupees after state contributions. India — Uttar Pradesh>>> received the highest interim allocation, followed by India — West Bengal>>>, India — Tamil Nadu>>>, India — Rajasthan>>>, India — Andhra Pradesh>>>, and India — Bihar>>>. While 26 states have completed procedural requirements, India — Jharkhand>>>, India — Karnataka>>>, India — Telangana>>>, and India — Mizoram>>> are still finalizing formalities. Shivraj Singh Chouhan>>> assured that no state would face fund reductions and that the interim allocation was based on previous MGNREGA expenditures. The new scheme aims to retain employment guarantees while offering greater flexibility for rural asset creation. Opposition parties, including the India — Indian National Congress>>> and India — Left Front>>>, have criticized the move, alleging it would dilute worker protections, a claim rejected by the India — Bharatiya Janata Party>>>-led NDA government.
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