Centre announces interim allocation for VB-GRAMG

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“Without causing any inconvenience to workers, we are moving from MGNREGA to VB-GRAMG. There will not be a gap of even a single day in the availability of work,” says Shivraj Singh Chouhan. File | Photo Credit: G.N. Rao

Union Rural Development Minister Shivraj Singh Chouhan on Tuesday (June 9, 2026) announced an interim allocation of ₹95,962 crore for the new rural employment scheme, the Vikshit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-GRAMG). This sum does not include the State governments’ share. Most States will have to contribute an additional 40% of the sum allocated to them. The combined outlay for the scheme will be ₹1.25 lakh crore.

Mr. Chouhan said that the allocation had been made even before notifying the scheme’s rules and framing the formula dictating distribution to different States, to ensure “a seamless transition” from the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). No State, he said, would face any reduction in funds.

“Without causing any inconvenience to workers, we are moving from MGNREGA to VB-GRAMG. There will not be a gap of even a single day in the availability of work,” he said.

According to the Rural Development Ministry, Uttar Pradesh has been allotted the highest interim allocation of ₹9,721.48 crore, followed by West Bengal (₹8,508 crore), Tamil Nadu (₹7,585.49 crore), Rajasthan (₹7,581.87 crore), Andhra Pradesh (₹7,707.21 crore) and Bihar (₹6,715.83 crore). The total allocation for States stands at ₹92,550.17 crore, while Union Territories have been allocated ₹1,291.52 crore. An additional ₹1,850.62 crore has been earmarked for central administration and social audits, taking the total to ₹95,692.31 crore.

The allocation is largely in line with funds given to States under MGNREGA in previous financial years. The thrust of the new programme, however, is to ensure that the employment scheme has a wider presence in economically weaker States, as indicated by the proposal in the draft rules to use the 16th