VB-GRAM G Scheme Gets First Instalment of ₹25,863 Crore
Complete current affairs notes with extra detail, exam facts, key points and 10 practice MCQs for UPSC, SSC, Banking, Railways & State PCS aspirants.
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The Union Ministry of Rural Development released the first instalment of ₹25,863 crore for the rural employment programme under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, popularly called VB-GRAM G. The funds were released on 5 July 2026 through video conferencing from Bhopal. The new Act came into effect across rural India from 1 July 2026, marking a major reform in India's rural wage employment framework.
Extra Detail
The VB-GRAM G Act, 2025 replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. The most important change is that the new law provides a statutory wage employment guarantee of 125 days in a financial year for eligible rural households, compared with 100 days under MGNREGA. This 25-day increase is aimed at strengthening the rural safety net and boosting rural incomes.
Under the revised wage structure, an interim base wage rate of ₹300 per day applies from 1 July 2026. The national average daily wage rose by ₹28.6 to ₹327.4 per day, up from ₹298.8 under MGNREGA. The funding pattern follows a 60:40 Centre-State ratio for most States and a 90:10 ratio for North-Eastern and Himalayan States. An interim allocation of about ₹95,692 crore has been made for States and Union Territories for wage payments and works. In the first instalment, Uttar Pradesh received ₹3,210.76 crore, Andhra Pradesh ₹2,545.5 crore, and Rajasthan ₹2,274.37 crore. The instalment was released to ensure wage payments within the mandated 15-day period, and States have been asked to release their matching share on time.
🎓 Exam Facts
- MGNREGA, 2005 is the predecessor law of the VB-GRAM G Act, 2025.
- VB-GRAM G provides 125 days of guaranteed wage employment in a financial year.
- The interim base wage rate under the scheme is ₹300 per day.
- Funding pattern = 60:40 Centre-State (90:10 for NE & Himalayan States).
- The scheme is implemented by the Ministry of Rural Development.
📌 Key Points
- First instalment of ₹25,863 crore released on 5 July 2026 from Bhopal.
- VB-GRAM G Act, 2025 replaces MGNREGA; effective from 1 July 2026.
- Guarantees 125 days of wage employment (up from 100 days).
- Interim base wage ₹300/day; national average wage ₹327.4/day.
- Total interim allocation about ₹95,692 crore for States and UTs.
📝 10 Practice MCQs
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Q1. What is the amount of the first instalment released under VB-GRAM G?
A) ₹15,863 crore B) ₹25,863 crore C) ₹35,863 crore D) ₹95,692 crore
Show Answer
Answer: B) ₹25,863 crore
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Q2. VB-GRAM G Act, 2025 replaces which earlier law?
A) NFSA, 2013 B) MGNREGA, 2005 C) RTE Act, 2009 D) PM-KISAN
Show Answer
Answer: B) MGNREGA, 2005
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Q3. How many days of guaranteed employment does VB-GRAM G provide?
A) 100 days B) 120 days C) 125 days D) 150 days
Show Answer
Answer: C) 125 days
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Q4. What is the interim base daily wage rate from 1 July 2026?
A) ₹250 B) ₹298.8 C) ₹300 D) ₹327.4
Show Answer
Answer: C) ₹300
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Q5. What is the Centre-State funding ratio for most States?
A) 50:50 B) 60:40 C) 75:25 D) 90:10
Show Answer
Answer: B) 60:40
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Q6. Which ministry released the first instalment?
A) Ministry of Finance B) Ministry of Rural Development C) Ministry of Agriculture D) Ministry of Labour
Show Answer
Answer: B) Ministry of Rural Development
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Q7. From which city was the instalment released via video conferencing?
A) New Delhi B) Bhopal C) Lucknow D) Jaipur
Show Answer
Answer: B) Bhopal
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Q8. Which State received ₹3,210.76 crore in the first instalment?
A) Rajasthan B) Andhra Pradesh C) Uttar Pradesh D) Madhya Pradesh
Show Answer
Answer: C) Uttar Pradesh
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Q9. What is the funding ratio for North-Eastern and Himalayan States?
A) 60:40 B) 70:30 C) 80:20 D) 90:10
Show Answer
Answer: D) 90:10
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Q10. From which date did the VB-GRAM G Act come into effect?
A) 1 April 2026 B) 1 July 2026 C) 5 July 2026 D) 1 January 2026
Show Answer
Answer: B) 1 July 2026
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