VB-G RAM G Scheme Jobs Drop Nearly 50% in July, Rural Employment Falls Sharply in First Full Month

Key Highlights

• Rural employment under VB-G RAM G declined nearly 50% in July compared to the same month last year.
• The scheme generated 7.67 crore person-days against 15.33 crore a year earlier.
• VB-G RAM G replaced MGNREGS from July 1 with higher wages and a 125-day employment guarantee.
• The government says implementation remains unaffected despite the transition.
• The July figures are the first full-month performance under the revamped rural employment programme.

India's newly launched rural employment programme, Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB-G RAM G, has recorded a significant decline in employment generation during its first full month of operation.

Official data shows that the scheme generated 7.67 crore person-days in July, compared with 15.33 crore person-days during the same period last year, reflecting a 49.94% year-on-year decline.

The numbers have triggered fresh discussions about the rollout of the revamped rural jobs programme and whether the transition from MGNREGS has affected employment generation.

Sharp Fall in Rural Employment

The decline comes shortly after the Centre replaced the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) with VB-G RAM G from July 1.

A person-day represents one individual receiving employment for one day under the scheme and is the standard metric used to measure rural job creation.

While the government has positioned VB-G RAM G as a more advanced version of MGNREGS, the first complete month of data indicates substantially lower employment generation compared with last year.

What Is Different Under VB-G RAM G?

The government introduced the new programme with several major changes intended to strengthen rural livelihoods.

Key features include:

• Employment guarantee increased from 100 days to 125 days annually
• Higher wages for workers
• Greater emphasis on creating durable rural assets
• Increased focus on improving long-term livelihoods
• Enhanced budget allocation for implementation

Officials have described the scheme as a modernised version of MGNREGS designed to improve both employment opportunities and rural infrastructure.

Government Maintains Transition Has Not Affected Implementation

The Ministry of Rural Development has maintained that the shift from MGNREGS to VB-G RAM G has not disrupted implementation.

During Parliament proceedings last month, the government stated that over 99.5% of workers demanding employment had received work, while more than 5.2 crore person-days had already been generated by July 22.

However, the final figures for July indicate that employment generation slowed further during the remainder of the month.

No Detailed Explanation Yet

Despite the sharp decline, the government has not yet issued a comprehensive explanation for why person-days fell by nearly half compared with the previous year.

Experts are expected to closely monitor employment data over the coming months to determine whether the decline was a temporary consequence of the transition or reflects a broader slowdown in rural employment generation.

Higher Budget, Bigger Expectations

VB-G RAM G has been launched with a significantly higher financial allocation.

For 2025–26, the programme has an outlay of Rs 1.52 lakh crore, substantially higher than the Rs 86,000 crore previously budgeted for MGNREGS.

With increased funding, higher wages and a longer employment guarantee, expectations remain high for the scheme's performance in the coming months.

The next few rounds of official data are likely to provide a clearer picture of whether rural employment improves as implementation stabilises.

FAQs

1. What is VB-G RAM G?

VB-G RAM G stands for Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), India's new rural employment programme replacing MGNREGS.

2. How much did employment decline in July?

Employment generation declined by 49.94% compared with July last year.

3. How many person-days were generated?

The scheme generated 7.67 crore person-days during July.

4. What was the figure last year?

MGNREGS generated 15.33 crore person-days in July of the previous year.

5. When was VB-G RAM G launched?

The scheme came into effect on July 1, 2026.

6. How many employment days are guaranteed under the new scheme?

Eligible rural households can receive up to 125 days of guaranteed employment annually.

7. Has the government commented on the decline?

The government has maintained that implementation has not been affected but has not issued a detailed explanation for the July decline.

8. What is a person-day?

A person-day refers to one individual receiving employment for one day under the scheme.

9. What is the budget allocated for VB-G RAM G?

The government has allocated Rs 1.52 lakh crore for the 2025–26 financial year.

10. Why is the July data significant?

It represents the first full month of performance after the replacement of MGNREGS with VB-G RAM G.