Centre announces ₹95,692 crore interim allocation under VB-G RAM G

The interim allocation comes ahead of the formal launch of VB-G RAM G on July 1, 2026, across the country

With El Nino looming on the horizon, the Centre released an interim sum of ₹95,692 crore under the newly introduced Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen) scheme on Tuesday for a seamless transition from MGNREGA. This includes ₹8,508 crore for West Bengal.

 

The interim allocation also comes ahead of the formal launch of VB G RAM G from July 1, 2026 across the country.  

 

The interim allocations were made based on 60 per cent of financial year 2026 (FY26) allocations for MGNREGA, as the government awaits the final version of draft rules for VB G RAM G that mandate a ‘normative’ annual allocation based on the 16th finance commission devolution formula.

 

 

A portion of the annual funds under the VB G RAM G scheme would also be allocated based on pre-fixed performance criteria to states.

 

Meanwhile, the sum allocated for West Bengal under VB G RAM G, is among the highest that Centre has made for the state for any demand for work programme since March 2022.

 

Fund releases under MGNREGA in West Bengal had been put on hold by the Central Government since March 9, 2022 as per provisions under section 27 of the MGNREG Act, 2005, due to non-compliance with central government directives.

 

Addressing a press conference after a meeting with the state rural development ministers, Chouhan said the interim allocation had been made to the states as the draft rules of the new scheme were still being finalised, and to ensure that rural employment and development activities continue uninterrupted after June 30.

 

He said the states were also told to notify the two agriculture months quickly, ahead of the kharif sowing season when VB G RAM G won’t be in place. Of all the states, only Mizoram has notified the two month sowing break.

 

"Without causing any inconvenience to workers, we are moving from MGNREGA to VB-G RAM G. 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 at ₹8,508 crore, Tamil Nadu at ₹7,585.49 crore, Rajasthan at ₹7,581.87 crore, Andhra Pradesh at ₹7,707.21 crore and Bihar at ₹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, bringing the total to ₹95,692.31 crore.

 

Chouhan said that after adding the mandatory state contribution, the total annual outlay under the scheme would be around ₹1.51 trillion.

 

He said 26 states have completed the procedural requirements necessary for implementing the new scheme, while four states — Jharkhand, Karnataka, Telangana and Mizoram — are yet to complete all formalities. However, representatives of these states attended the meeting and assured the Centre that they were preparing for implementation.

 

On West Bengal, which was at loggerheads with the Centre over rural development funds for several years, Chouhan said the newly elected state government has conveyed in writing that it is willing to comply with all conditions laid down by the Centre.

 

Asked whether the allocation of ₹8,508 crore for West Bengal included pending dues under the MGNREGA scheme, Chouhan said disputes relating to past dues remained unresolved.

 

"Till those disputes are settled, that question does not arise. For the remaining period, the West Bengal government has given in writing that it is ready to accept all the rules and conditions of the central government," he said.

 

An interim allocation of around ₹700 crore had been made for West Bengal for the remaining period till June 30 under the existing framework. Fresh allocation under VB-G RAM G would come into effect from July, he added.

 

Agriculture Minister Shivraj Singh Chouhan on Tuesday said the government has identified 197 districts across the country as most vulnerable to the impact of El Nino, adding that the ministry has prepared state-wise contingency plans.

 

"The concern about El Nino is always on my mind 24x7. Not definitive, but 197 districts are identified as most vulnerable," Chouhan told reporters. The ministry is holding weekly meetings to assess the El Nino phenomenon and has stockpiled necessary agricultural inputs, including seeds, to respond swiftly if conditions worsen.