Massive Funding Injection: States Receive First Installment of ₹25,863 Crore for VB-G-RAM-G as Wage Rates Are Guaranteed Above ₹300

Massive Funding Injection: States Receive First Installment of ₹25,863 Crore for VB-G-RAM-G as Wage Rates Are Guaranteed Above ₹300​

Union Minister for Rural Development Shri Shivraj Singh Chouhan announced the release of the first installment amounting to ₹25,863 crore to all states. This significant funding is designated for the implementation of the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) [VB-G-RAM-G]. The Minister conducted a video conference with Rural Development Ministers across various states and Union Territories to review the scheme's progress.

Shri Chouhan confirmed that the government committed to rolling out VB-G-RAM-G nationwide without disruption starting from July 1, 2026. He noted the successful and seamless transition of the scheme across the country. The transition from MGNREGA to VB-G-RAM-G has been reported as smooth, with no technical or operational issues being reported so far.

Scheme Rollout Achieves Landmark Milestone​

The Minister highlighted that VB-G-RAM-G was successfully rolled out nationwide in a single day. This rapid implementation is described as a major achievement credited to the leadership of Prime Minister Shri Narendra Modi and effective administrative coordination across states. Chouhan contrasted this speed with MGNREGA, which took nearly three years for full national implementation.

He stated that initial progress shows work has commenced in numerous Gram Panchayats during the first week. Employment opportunities have been generated for lakhs of rural workers. The Minister specifically commended Andhra Pradesh, Kerala, and Rajasthan for creating a large number of jobs on the inaugural day.

Financial Commitment Ensures Wage Security​

A key commitment made under VB-G-RAM-G is that no state in India will have a wage rate below ₹300 per day. Chouhan stated that wage rates under the scheme have been increased by approximately 10 percent on average across states. This increase reflects the government's dedication to strengthening the income and social security of rural workers.

The first installment of ₹25,863 crore is aimed at ensuring states possess adequate funds. This financial backing facilitates timely wage payments, targeting a payment cycle within 15 days. The Minister urged all state governments to promptly release their mandated matching share to prevent any delays in these crucial wage disbursements.

Transparency and Accountability Standards Set for Rural Work​

Emphasizing the importance of integrity and oversight, the Minister stressed that Face Authentication and Geo-tagging technologies must be implemented completely. He made it explicitly clear that the scheme has zero tolerance for fraud or irregularity. The government is committed to ensuring transparency, credibility, and the creation of quality rural assets.

Shri Chouhan further clarified that timely wage payment is a shared responsibility between the Central and State Governments. While the Union Government fulfilled its duty by releasing the first installment promptly, states are expected to release their designated share swiftly. Furthermore, Gram Sabhas and Gram Panchayats were instructed to select development works based on local needs for truly inclusive rural progress.

Administrative Oversight and Regional Actions​

The Ministry has deployed Area Officers, led by officers of the rank of Joint Secretary, to offer continuous support nationwide. These specialized officials will maintain regular coordination with states and ensure quick resolution of implementation challenges. The Minister also addressed specific regional requirements during his review. Odisha and West Bengal were urged to initiate work in remaining Gram Panchayats immediately. Jharkhand was requested to notify the scheme and make necessary budgetary provisions forthwith.