Shivraj Singh Chouhan,Union Rural Development Minister, rolled out interim ₹95,962 crore allocation for new rural employment initiative, VB-GRAMG,on Tuesday, June 9, 2026. This chunk of change,minus State contributions,is part of bigger ₹1.25 lakh crore scheme.
Chouhan stressed allocation came before formal notification of scheme's rules to ensure smooth shift from MGNREGS. He promised no State would see fund cuts during transition. “Without causing any inconvenience to workers, we are moving from MGNREGA to VB-GRAMG . There will not be a gap of even single day in the availability of work,” he said.
Allocation mirrors past MGNREGA funding levels. Uttar Pradesh gets biggest slice at ₹9,721.48 crore,West Bengal follows with ₹8,508 crore,Tamil Nadu at ₹7,585.49 crore. Other key figures: ₹7,581.87 crore for Rajasthan, ₹7,707.21 crore for Andhra Pradesh, ₹6,715.83 crore for Bihar . Total State allocation hits ₹92,550.17 crore,Union Territories get ₹1,291.52 crore. Central administration and social audits add ₹1,850.62 crore,bringing total to ₹95,692.31 crore.
With VB-GRAMG set to launch July 1, government targets boosting program's reach in poorer States. Draft rules suggest using 16th Finance Commission’s formula for future fund distribution,possibly shaking up State shares .
Chouhan mentioned 26 States ready for new scheme,while four—Jharkhand,Karnataka,Telangana,Mizoram—still wrapping up prep. Their reps assured Centre they're on track.
Before VB-GRAMG fully kicks off, States must set rules, complete e-KYC for beneficiaries, sort blackout periods, and do capacity-building at district and block levels . In West Bengal, despite BJP's rise to power,unresolved MGNREGA dues of ₹8,508 crore remain thorny issue. Chouhan noted, “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 Central government.”
