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EconomyPIB5 July 2026

Shivraj Singh Chouhan Releases First Installment of ₹25,863 Crore to States for VB-G-RAM-G

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📌 Summary:

  • Union Rural Development Minister released the first installment ("Mother Sanction") of ₹25,863 crore to states for VB-G-RAM-G (Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin))

  • VB-G-RAM-G replaced MGNREGA and was rolled out nationwide in a single day from 1 July 2026 — contrasted with MGNREGA's ~3-year phased rollout; no technical/operational issues reported so far

  • Wage rates raised ~10% on average; no state will have a wage rate below ₹300 per day; wages to be paid within 15 days — first installment ensures states have adequate funds

  • Transparency measures mandatory: Face Authentication, Geo-tagging and technology-based monitoring; goal of durable, quality rural assets chosen by Gram Sabhas/Gram Panchayats

  • Joint Secretary-rank Area Officers deployed for continuous state support; states urged to release matching share on time

  • Progress: Andhra Pradesh, Kerala, Rajasthan praised for first-day employment generation; Odisha and West Bengal asked to start works in remaining Gram Panchayats; Jharkhand yet to notify the scheme

🎯 UPSC Relevance: GS2 Governance — welfare scheme design and transition from MGNREGA; GS3 Economy — rural employment guarantee, wage policy, asset creation

📝 Prelims Facts:

  • VB-G-RAM-G = Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin); operational from 1 July 2026, replacing MGNREGA
  • First installment (Mother Sanction): ₹25,863 crore
  • Minimum wage floor: ₹300/day; wage payment timeline: 15 days

🔑 Key Term: Mother Sanction — the umbrella first-installment fund release to states under VB-G-RAM-G

VB-G-RAM-GMGNREGArural employmentwage raterural development

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