**Executive Summary**
This document outlines the Federal Contribution of Funds under the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025. The Act aims to enhance rural employment guarantee to 125 days per financial year, aligning with the national vision of Viksit Bharat @2047. The fund-sharing pattern is established as 90:10 for specific regions and 60:40 for others. The financial year 2026-27 has a central share provision of ₹95,692.31 crore, with a total outlay expected to exceed ₹1.51 lakh crore.
**Key Points / Main Content**
* **Objective of VB-G RAM G Act, 2025:** To align the rural development framework with the national vision of Viksit Bharat @2047 by providing an enhanced statutory wage employment guarantee of 125 days annually for rural households volunteering for unskilled manual work.
* **Demand-Driven Nature:** The program retains its demand-driven nature, ensuring workers are entitled to the guaranteed 125 days of employment.
* **State-wise Allocation:** The Central Government will determine state-wise normative allocations based on objective parameters.
* **Fund-Sharing Pattern:**
* 90:10 (Central: State) for North-Eastern States, Himalayan States, and Union Territories (Uttarakhand, Himachal Pradesh, Jammu and Kashmir).
* 60:40 (Central: State) for all other States and Union Territories with legislature.
* **Consistency with CSS:** The 60:40 sharing model is consistent with the broader framework of Centrally Sponsored Schemes (CSS), promoting cooperative federalism.
* **Financial Provision (2026-27):** A central share of ₹95,692.31 crore has been allocated for VB-G RAM G, representing the largest allocation for a rural employment program at the Budget Estimate stage.
* **Total Program Outlay:** With the estimated State share, the total outlay is expected to exceed ₹1.51 lakh crore, aiming to accelerate rural transformation and employment generation.
* **Operational Relaxations:** In extraordinary circumstances (natural disasters, pandemics), State Governments can recommend special relaxations to the Centre, which can empower the expansion of permissible works, procedural relaxations, and temporary enhancements of employment provisions. The framework is designed to be responsive and flexible.
**Impact Analysis**
**State Governments**
* **Impact:** States will be active partners in rural development and will need to contribute their share of funds according to the specified sharing pattern. They will also be responsible for implementing the scheme and recommending operational relaxations when needed.
* **Action Required:** States must align their rural development strategies with the VB-G RAM G Act, ensure the provision of their share of funds, and adhere to the implementation guidelines. They should also be prepared to propose special operational relaxations in exceptional circumstances.
Key Entities Referenced
Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) VB-G RAM G Act, 2025: The primary legislation establishing the rural development framework and wage employment guarantee.
Section 22 of the Act: Key section detailing the determination of state-wise normative allocations and the Scheme's nature as Centrally Sponsored.
Centrally Sponsored Scheme: The classification of the Scheme under the Act, dictating the fund-sharing pattern between the Central and State Governments.
Ministry of Rural Development: The government ministry responsible for implementing the Act and Scheme.
Shri Kamlesh Paswan: Minister of State for Rural Development, who provided the information about the Act.
Ministry of Rural Development
FEDERAL CONTRIBUTION OF FUNDS UNDER
VB-G RAM G
Posted On: 13 MAR 2026 5:41PM by PIB Delhi
The primary objective of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) VB-G
RAM G Act, 2025, is to align the rural development framework with the national vision of Viksit Bharat
@2047 by providing an enhanced statutory wage employment guarantee of one hundred and twenty-five
days in each financial year to such rural households whose adult members volunteer to undertake
unskilled manual work, thereby enabling them to participate more effectively in the expanded livelihood
security framework. As Viksit Bharat G RAM G retains the demand driven nature of the program, the
workers are entitled to avail the guarantee of 125 days given under the Act.
As per the Sub-section (4) of Section 22 of the Act, the Central Government shall determine the State-wise
normative allocation for each state based on objective parameters as may be prescribed by the Central
Government.
Further, as per Section 22 of the Act, the Scheme implemented under the Act shall be a Centrally
Sponsored Scheme and the fund-sharing pattern between the Central Government and the State
Government shall be 90:10 for the North-Eastern States, Himalayan States and Union Territory
(Uttarakhand, Himachal Pradesh and Jammu and Kashmir) and 60:40 for all other States and Union
territories with legislature. Here it is stated that presently, many Centrally Sponsored Schemes (CSS)
across sectors are being implemented on the 60:40 sharing model. The 60:40 pattern adopted under this
Act is therefore consistent with the broader framework of Centrally Sponsored Schemes. This model
promotes cooperative federalism by making States active partners in rural development.
For the financial year 2026–27, a Central share provision of ₹95,692.31 crore has been made for the Viksit
Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) , representing the largest allocation ever, for
rural employment progamme at Budget Estimate Stage. With the inclusion of the corresponding estimated
State share, the total programme outlay is likely to exceed ₹1.51 lakh crore, which is expected to
significantly accelerate rural transformation, large-scale employment generation and income enhancement
in rural areas.
In addition, the Act also provides that in the event of natural disasters, pandemics, or other extraordinary
circumstances, State Governments may recommend special operational relaxations to the Centre. The
Central Government is empowered to allow expansion of permissible works, relaxation in documentation
procedures, and temporary enhancement of employment provisions in such situations. The framework is
thus responsive, flexible, and sensitive to emerging needs.
This information was given by the Minister of State for Rural Development Shri Kamlesh Paswan in a
written reply in the Rajya Sabha today.
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