NEW DELHI: As the VB-G RAM G Act, 2025—which replaces the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)—is yet to be formally notified and brought into force, Union Finance Minister Nirmala Sitharaman on Friday said that there will be a provision of Rs 95,000 crore for the new scheme from April 1.
However, replying to a question in the Lok Sabha, Minister of State for Rural Development Kamlesh Paswan had said on Tuesday (March 10) that the ministry was still in the process of framing detailed rules relating to the transitional provisions to facilitate a smooth and orderly transition from MGNREGA to the VB-G RAM G framework.
Responding to the debate on the second batch of supplementary demands for grants, the minister said Rs 95,000 crore had been allocated under the VB-G RAM G scheme for 2026-27. Besides, the second batch of supplementary demands for grants provides Rs 30,000 crore to clear the MGNREGA dues up to March 31, 2026.
Taking a swipe at the Opposition on MGNREGA funds, Sitharaman said, “The Opposition simply doesn’t care. But when they come again and stand here, they ask, “What did you give for MGNREGA? This government has reduced the funds for MGNREGA.”
“When we brought the VB-G RAM G Bill, at that time Rs 95,000 crore was allocated. It is in the budget. After the Finance Bill is passed, from 1st April there will be provision of Rs 95,000 crore under the same,” she said. For those old pending bills, Rs 30,000 crore has been provided in this Supplementary Demand for Grants. This will clear the MGNREGA dues up to 31st March,” she added.
While the VB-G RAM G, promises 125 days of work in a year, state governments have been demanding clarity in the new scheme and state-wise “normative allocations.”
No clarity
While the VB-G RAM G, promises 125 days of work in a year, state governments have been demanding clarity in the new scheme and the state-wise allocations.