Finance Minister Nirmala Sitharaman holds a folder bearing the Government of India's emblem, as she poses with her officials while leaving her office to present the annual federal budget in parliament, in New Delhi. (Reuters)
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CNBC TV1801-02-2026, 15:52

Budget 2026: Sitharaman Allocates ₹95,692 Crore for New Rural Jobs Scheme VB-G RAM G

  • Finance Minister Nirmala Sitharaman has provisioned ₹95,692 crore for the rebranded rural employment scheme, Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), in Budget 2026.
  • VB-G RAM G ensures 125 days of wage employment for rural households volunteering for unskilled manual work, an increase from MNREGA's 100 days.
  • The scheme, formerly MNREGA, was rebranded in December last year, marking changes in name, design, and the Centre-state cost-sharing framework.
  • Under the new framework, expenditure will be shared in a 60:40 ratio between the Centre and states for most states, and 90:10 for special category states, increasing states' fiscal responsibility.
  • Critics warn that VB-G RAM G might dilute the employment guarantee framework, despite an increased budget provision compared to previous MNREGA allocations.

Why It Matters: Budget 2026 allocates ₹95,692 crore to the new VB-G RAM G rural jobs scheme, increasing work days but shifting cost-sharing.

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