Centre Releases ₹25,863 Crore for Rural Jobs Under New Act, Critics Flag Top-Down Planning
Union Minister for Rural Development and Agriculture Shivraj Singh Chouhan on Sunday (July 5, 2026) released the first instalment of ₹25,863 crore to all States under the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act [VB-GRAM G]. The programme replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and aims to provide rural employment.
Uttar Pradesh received the highest allocation at ₹3,210.76 crore, followed by Andhra Pradesh at ₹2,545.5 crore, Rajasthan at ₹2,274.37 crore, and Tamil Nadu at ₹2,176.84 crore. Kerala got ₹925.33 crore, the smallest among major states.
Speaking via video conference from Bhopal, Chouhan said: “Today, I am overjoyed and pleased to congratulate all of you… on the fact that there have been no complaints whatsoever so far. This signifies that this policy has smoothly transitioned from MGNREGA into the Viksit Bharat G-RAM G.”
The VB-GRAM G Act came into effect on July 1, 2026. Work under the scheme will begin with the preparation of a Viksit Gram Panchayat Plan (VGPP). According to a draft framework, the planning process starts with a comprehensive inventory of all assets and facilities in a gram panchayat, including those created under various Central and State schemes.
This inventory will be mapped using geospatial and non-spatial data on platforms like Yuktdhara (a GIS-based planning portal developed by ISRO) and PM Gati Shakti, a national master plan launched in 2021 that integrates over 16 Ministries for coordinated infrastructure planning.
Based on this database, development gaps are identified through GIS-enabled assessment on the Yuktdhara portal. The gram panchayat then prepares a draft VGPP considering “identified gaps, local priorities, demand for works and the recommendations of Ward Sabhas and the Gram Sabha.”
However, critics have raised concerns. Nikhil Dey of the Mazdoor Kisan Shakti Sangathan said: “They have converted what was a bottom-up, demand-driven scheme into a top-down, centrally designed infrastructure programme.” He added that States are now expected to fund centrally designed programmes that cater to the Centre’s priorities rather than those of the States. “Under MGNREGA, 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.”
