Ahead of rolling out the implementation of the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) – popularly acronymed as G RAM G law -- from July 1 across the country, the Centre has notified the Draft Rules for public feedback with a deadline to receive any suggestion by June 20.
On 11 May 2026, the Centre in a notification announced that the VB–G RAM G Act, 2025, replacing UPA’s flagship job guarantee law the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, would be rolled out nationwide from July 1. With the coming into force of the VB–G RAM G Act, MGNREGA shall stand repealed from the same date, it said.
According to the Draft Rules, notified on May 22, “The Central Government shall, for each financial year, determine the normative allocation of the funds, for every State, based on the objective parameters specified in these rules.”
As the Centre moved away from demand-driven job guarantee in MGNREGA to the fixed-resource-based offer under the VB–G RAM G Act, which was widely criticised for reverting to another government scheme as was the situation before MGNREGA, the Draft Rules have also defined the “objective parameters.”
Section 4 (1) of the Rules proposed: “For the purpose of determining normative allocation for each financial year, the Central Government shall adopt the objective parameters used for horizontal devolution among States as recommended by the 16th Finance Commission and accepted by the Government of India. But Section 4 (2) further clarified the dominance of the Centre in the decision making as it says: “the parameters referred to in sub-rule (1) shall be applied for inter-State distribution of funds through such methodology as may be determined by the Central Government.”
It further said that from 2027-28, a portion of the normative allocation may also be determined on the basis of certain performance criteria such as timely payment of wages; compliance with social audit requirements; percentage of completion of works in a financial year; such other performance-related indicators as may be specified by the Central Government from time to time.
“This proposal paves way to cut certain percentage of allocation at discretion using parameters which may be designed for that purpose as it leaves the power with the Centre to add any other performance-related indicators at any time,” said a former senior official of the Rural Development Ministry.
The Centre is also preparing Draft Rules on Transitional Provisions , National Level Steering Committee Rules, Central Gramin Rozgar Guarantee Council, Administrative Expenditure, Grievance Redressal, Manner of Payment of Wages and Unemployment Allowance, Manner and procedure to bear excess expenditure, manner to bear the expenses of Scheme for Union Territories without legislature.
Published on May 23, 2026