Full Breakdown
Viksit Bharat G-RAM-G Scheme Receives First INR25,863 crore Disbursement
7/6/2026, 12:39:55 PM
First Installment Launch
On 5 July 2026, Union Minister for Rural Development and Agriculture Shivraj Singh Chouhan released the first INR25,863 crore tranche for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB-GRAM G) via video-conference from Bhopal. He noted the absence of complaints and described the rollout as a smooth transition from MGNREGA.
Legislative Design and Funding
Effective 1 July 2026, the VB-GRAM G Act replaces MGNREGA, extending the statutory employment guarantee to 125 days per rural household and shifting the Centre-State cost share to 60 % Centre, 40 % State. The law also drops Mahatma Gandhi’s name, a point raised by opposition parties.
Allocation Snapshot
The INR25,863 crore first instalment was allocated primarily to Uttar Pradesh (INR3,210.76 crore), Andhra Pradesh (INR2,545.5 crore), Rajasthan (INR2,274.37 crore), Tamil Nadu (INR2,176.84 crore) and Kerala (INR925.33 crore); remaining states received proportionally smaller shares.
Planning Mechanism
Implementation begins with a Viksit Gram Panchayat Plan (VGPP) that inventories gram-panchayat assets via ISRO’s Yuktdhara GIS portal and the PM Gati Shakti platform, enabling gap analysis and local priority setting.
Official Position
The Union Minister emphasized that the scheme has proceeded without grievances and highlighted the 125-day guarantee as a measure to strengthen livelihood security and improve rural incomes. The Centre’s 60 % share and the State’s 40 % share constitute the funding arrangement, while wage payments are mandated weekly or within fifteen days of muster-roll closure, with delay compensation for non-payment.
Criticism
Mazdoor Kisan Shakti Sangathan (MKSS) leader Nikhil Dey warned that the reform turns a bottom-up, demand-driven scheme into a top-down, centrally designed infrastructure programme, shifting fiscal responsibility to states, eroding gram-panchayat autonomy, and reflecting broader concerns over centralised planning, with decisions now “made on a computer” rather than through local deliberation.
Conflicting Reports & Gaps
The source material provides limited verification of fund utilisation at the village level, and the reporting outlets have modest reliability scores (?43 %).
Verbatim Quotes
- “Today, I am overjoyed and pleased to congratulate all of you, our Rural Development Ministers and officials from both the Central and State governments, on the fact that there have been no complaints whatsoever so far.” — Shivraj Singh Chouhan, Union Minister
- “This signifies that this policy has smoothly transitioned from MGNREGA (the erstwhile Mahatma Gandhi National Rural Employment Guarantee Act) into the Viksit Bharat G-RAM G,” the Union Minister said.” — Shivraj Singh Chouhan, Union Minister
- “They have converted what was a bottom-up, demand-driven scheme into a top-down, centrally designed infrastructure programme,” — Nikhil Dey, Mazdoor Kisan Shakti Sangathan
- “Under MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), it was the sole prerogative of the gram panchayats to decide the shelf of projects and also to determine priorities. Now, everything will be decided on a computer,” — Nikhil Dey, Mazdoor Kisan Shakti Sangathan
What’s Next
State authorities are expected to submit VGPP drafts within the next quarter; the Ministry will then approve projects and release further instalments. GIS-based monitoring on Yuktdhara will track progress to verify compliance with the 125-day guarantee and the Centre-State funding split.
