Guwahati: The Government of Assam‘s Panchayat and Rural Development Department has commenced the implementation of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM-G) from July 1, 2026, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The new scheme guarantees up to 125 days of wage employment annually for eligible rural households and integrates advanced digital monitoring systems including biometric attendance and GPS-based worksite tracking.
This significant overhaul of India’s rural employment architecture aims to enhance livelihood security and foster durable asset creation, aligning with the national vision of Viksit Bharat @2047. The Assam Cabinet has approved an implementation framework with an initial budgetary allocation of Rs 2,000 crore for the current financial year, with approximately Rs 1 crore earmarked for each panchayat.
What was announced
The Union Ministry of Rural Development issued a notification on May 11, 2026, confirming that the VB-GRAM-G Act, 2025, would come into force across all rural areas of the country from July 1, 2026, simultaneously repealing the MGNREGA, 2005.
Assam’s Panchayat and Rural Development Minister, Atul Bora, informed the State Assembly on July 16, 2026, about the statewide rollout of VB-GRAM-G. He highlighted that the scheme increases the guaranteed employment days from 100 to 125 per year and raises the daily wage for job cardholders in Assam from Rs 256 to Rs 300, effective from July 1, 2026.
Chief Minister Himanta Biswa Sarma had earlier announced on June 13, 2026, that the Assam Cabinet approved the implementation framework for VB-GRAM-G. He stated that the scheme shifts from a purely employment-centric approach to one that combines livelihood support with rural asset creation, ensuring long-term developmental outcomes at the village level.
Why it matters
The introduction of VB-GRAM-G marks a substantial shift in rural employment policy, primarily by increasing the statutory guarantee of wage employment from 100 to 125 days per financial year for eligible rural households. This translates to an additional 25 days of work, potentially boosting annual income for many families dependent on such schemes.
For Assam, the immediate impact includes a notable increase in the daily wage rate by Rs 44, from Rs 256 to Rs 300, providing better financial stability for rural workers. The scheme also places a strong emphasis on technology-enabled governance, incorporating biometric attendance through the National Mobile Monitoring System (NMMS) app and GPS-based worksite monitoring to enhance transparency and accountability, thereby reducing irregularities and ensuring timely wage payments.
Furthermore, VB-GRAM-G prioritises the creation of durable community assets, focusing on four key verticals: water security through water-related works, core rural infrastructure, livelihood-related infrastructure, and special works to mitigate extreme weather events. This focus aims to transform rural employment into a productive driver of sustainable village development.
Background
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, served as a cornerstone of India’s rural welfare framework for two decades, providing a legal right to 100 days of unskilled manual work. Despite its significant contributions, particularly during economic downturns and the COVID-19 pandemic, MGNREGA faced persistent challenges.
Critics and various reports highlighted issues such as funding constraints, leading to demand suppression and wage shortfalls, and a mismatch between wages and inflation. Administrative hurdles, including delayed wage payments, exclusion errors due to Aadhaar-based payment systems, and concerns over the quality of assets created, also plagued the scheme.
The need for a more robust and future-ready framework, aligned with the national aspiration of Viksit Bharat @2047, led to the conceptualisation of VB-GRAM-G. The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, was passed by the Parliament of India in December 2025, receiving presidential assent on December 20, 2025. This new legislation aims to address the structural deficiencies of MGNREGA while enhancing employment, transparency, and accountability through a modernized approach.
Key details
The VB-GRAM-G scheme guarantees 125 days of wage employment per financial year for every rural household whose adult members volunteer for unskilled manual work.
Wage payments will continue to be made directly into beneficiaries’ bank or post office accounts through Direct Benefit Transfer (DBT), with payments mandated on a weekly basis or within 15 days of muster roll closure. Provisions for delay compensation and unemployment allowances will also continue under the new Act.
A significant technological upgrade includes mandatory biometric attendance through face authentication using the National Mobile Monitoring System (NMMS) app and GPS tracking for worksite monitoring. This aims to eliminate fake entries and ensure that only genuine workers receive payments.
The scheme integrates GIS-based village planning, drawing works from the Viksit Gram Panchayat Plan (VGPP) and combining them into the Viksit Bharat National Rural Infrastructure Stack. This stack focuses on water security, core rural infrastructure, livelihood infrastructure, and special works for mitigating extreme weather events.
VB-GRAM-G operates as a Centrally Sponsored Scheme. The fund-sharing pattern between the Central Government and State Governments will be 60:40 for most states, while for North-Eastern and Himalayan states like Assam, it will be 90:10. This ratio applies to wages, material costs, and administrative costs.
To ensure the availability of agricultural labourers during peak seasons, the scheme allows for a break of up to 60 days during sowing and harvesting periods, which state governments must announce in advance.
Reactions
Union Minister for Rural Development and Agriculture Shivraj Singh Chouhan expressed confidence that VB-GRAM-G marks the dawn of a “new era in the lives of labourers” and would be a milestone in building “developed villages” for a “developed India.”
Dr. B Kalyan Chakravarthy, Additional Chief Secretary, Department of Panchayat and Rural Development, Government of Assam, emphasised that increasing employment days under VB-GRAM-G is crucial for providing sustainable income support to rural households. He also highlighted digital payment of wages as a key feature, ensuring timely remuneration and eliminating delays.
However, the new framework has also drawn criticism. Congress leader Jairam Ramesh, for instance, raised concerns about the potential for extreme centralisation and the weakening of rural labour’s bargaining power, stating that “the constitutional right to work and the right to wages of rural Indian families is being stolen.” Concerns have also been raised regarding the increased financial burden on states, with some estimates suggesting a six-fold increase in state expenditure compared to MGNREGA.
What’s next
With VB-GRAM-G now effective from July 1, 2026, the focus shifts to its seamless implementation across Assam and the rest of the country. The preparation of Viksit Gram Panchayat Plans (VGPPs) is underway, which will involve creating a comprehensive inventory of assets and identifying development gaps using geospatial data on platforms like Yuktdhara and PM Gati Shakti.
Existing MGNREGA job cards will remain valid during a six-month transition phase, ending December 31, 2026, to ensure continuity of work and payments. State governments are tasked with making advance announcements for the 60-day agricultural season break.
Sources & References
Source: The Assam Tribune