BUDGET
FY27 outlay under VB-G RAM G pegged INR 956.92 bln, up 8.7% YoY
This story was originally published at 13:55 IST on 1 February 2026
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--BUDGET: Pegs FY27 VB-G RAM G outlay at INR 956.92 bln
--BUDGET: Pegs FY27 MGNREGA outlay INR 300 bln vs revised INR 880 bln FY26
NEW DELHI – The Union Budget for 2026-27 (Apr-Mar) has proposed an allocation of INR 956.92 billion for the new rural employment scheme, Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), higher than the revised estimate of INR 880 billion allocated for the erstwhile Mahatma Gandhi National Rural Employment Guarantee Act in FY26.
The Budget has also proposed allocation of INR 300 billion for the MGNREGA programme component for FY27.
The new scheme, legislated under the VB-G RAM G Act, 2025, replaced the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, in December and raised the guaranteed employment to 125 days from 100 days under the MGNREGA.
The Act will be implemented as a centrally-sponsored scheme and operationalised by state governments, with a cost-sharing pattern of 60:40, 90:10 for north-eastern and Himalayan states, and 100% central funding for Union Territories without legislatures.
The Act has drawn strong criticism from Opposition parties over changes in funding patterns and the omission of Mahatma Gandhi from the name of the rural employment scheme. End
Reported by Afra Abubacker and Ashutosh Pati
Edited by Avishek Dutta
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