
New Delhi, Jul 1, 2026: The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 comes into force on July 1, with the Centre stating that all administrative and financial preparations have been completed for its nationwide rollout.
Replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the new law increases the statutory guarantee of wage employment for eligible rural households from 100 days to 125 days, expanding the scope of rural employment.
To facilitate a smooth transition, the Ministry of Rural Development has released an interim allocation of Rs 95,692.31 crore to states and Union Territories. The funds are aimed at ensuring timely wage payments and uninterrupted execution of works under the scheme.
Union Rural Development Minister Shivraj Singh Chouhan said the government is committed to ensuring that every eligible rural worker receives employment without delay. He said no eligible worker should remain without work even for a single day.
Existing e-KYC-verified job cards will remain valid until the new Gramin Rozgar Guarantee Cards are issued. Gram panchayats will continue to play a key role in implementing the scheme, with priority given to natural resource management, water conservation, agriculture and allied activities, rural infrastructure, and women’s empowerment.
According to the ministry, 29 states and Union Territories have made budgetary provisions for implementing the Act, while 24 have already notified their respective state-level VB-G RAM G schemes.
The national launch of the Act will take place on July 2 at Mukkavaripalli village in Obulavaripalle mandal of Andhra Pradesh’s Tirupati district. The event will include the distribution of new Gramin Rozgar Guarantee Cards and awareness materials.
Opposition voices concerns
The rollout has faced criticism from Opposition parties and rural employment activists, who have expressed concerns over the scheme’s demand-driven nature, the autonomy of states and gram panchayats, and whether sufficient financial resources have been allocated for effective implementation.
The Centre, however, maintains that the enhanced employment guarantee and the expanded framework will strengthen rural livelihoods and improve the creation of durable community assets.
Official data presented at the Rashtriya Gramin Vikas Sammelan, which concluded in New Delhi on Monday, showed that 14 of the 34 states and Union Territories are yet to formally notify the Act. It also noted that five states have not identified peak agricultural seasons as required under the law, while several major states are yet to open the mandatory Reserve Bank of India (RBI) accounts needed for implementation.