Regulations to implement VB-G RAM G Act on rural employment yet to be finalised

9 MARCH 2026

The Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, has several steps to clear before it can be implemented.
The new rural employment legislation, which was passed by Parliament within two days of its introduction on December 16, 2025, replaces the Congress-led UPA government’s flagship scheme, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.

Normative Allocation bases on Objective Parameters

Section 4(5) of the legislation says, “The Central government shall determine the state-wise normative allocation for each financial year, based on objective parameters as may be prescribed by the Central government.”
The legislation requires that all Gram Panchayats be categorised as A, B, or C, based on development parameters.
The Act cites only one example — “proximity to urban areas” — of what these “development parameters” could entail.
This clause is intended to ensure a more equitable distribution of resources, following complaints from several economically weaker States that they receive a smaller proportion of funds.
According to sources, the Union Rural Development Ministry is holding weekly consultation meetings with the State governments.

Five essential elements

These include ensuring that ongoing work under the old legislation — MGNREGA — is completed.
Second, the States must enrol themselves on DBT Sparsh, a banking platform. West Bengal has not yet enrolled on the platform, according to sources.
Third, the ongoing drive to conduct e-Know Your Customer (EKYC) verification of MGNREGA job cards must be completed.
Finally, State governments must onboard Yuktdhara, a geospatial planning portal that the Centre wants used for preparing the Viksit Gram Panchayat plan, which will function like a master schedule of all works planned for the year.
Sources indicated that the new legislation may not be ready for roll-out by April 1, 2026.
From the day the new Act is notified by the Centre — to be treated as the commencement date — the State governments will have six months to implement the scheme.