VB-GRAM-G responds to these aspirations through a new planning philosophy based on convergence, saturation and scientific planning
On Wednesday (24-06-2026), the Hon’ble Lt. Governor officially notified the Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission-(Gramin) scheme for all rural areas across J&K. Simultaneously, the administrative machinery of the Rural Development Department is in the process to ensure a seamless rollout of this significant transition on July 1st, when MG-NREGS will formally evolve into the VB-GRAM-G, nationally.
While this major policy shift has naturally sparked some apprehension regarding the continuity of job guarantees and tech-driven implementation, a careful reading of the new Act offers reassurance. The core statutory employment guarantee remains fully intact. It is the broader architecture of rural development that has been strengthened and modernized.
The most important reassurance for rural households is that the statutory employment guarantee continues. In fact, the guarantee has been expanded from “100 days to not less than 125 days of wage employment per rural household in a financial year”. Equally significant is the legal provision that protects all existing entitlements. Households already registered under MG-NREGS will transition seamlessly into the new system without any interruption in benefits.
The rationale behind this transformation lies in the changing realities of rural India. Over the last decade, villages across the country have witnessed remarkable improvements in road connectivity, sanitation, digital access, financial inclusion, housing and basic services. Rural aspirations have consequently evolved. The demand today is not merely for temporary wage employment but also for productive infrastructure, improved agricultural productivity, climate resilience and livelihood diversification.
VB-GRAM-G responds to these aspirations through a new planning philosophy based on convergence, saturation and scientific planning. Under the previous system, works often emerged as isolated, demand-driven interventions. While these contributed significantly to local development, they were sometimes fragmented and lacked integration with broader development priorities. The new programme introduces the concept of the Viksit Gram Panchayat Plan, under which every Gram Panchayat will prepare a comprehensive development plan approved by the Gram Sabha.
These plans will no longer be prepared in isolation. Instead, they will be supported by GIS-based planning tools, satellite imagery and the PM Gati Shakti National Master Plan, which integrates multiple spatial datasets across sectors. Gram Panchayat plans will subsequently be integrated into the National Rural Infrastructure Stack.
The National Rural Infrastructure Stack is the most transformative feature of the new architecture. It envisages a single digital registry of all rural public assets and proposed works, irrespective of the funding source. Whether an asset is created under VB-GRAM-G, PMAY-G or any other programme, it will be mapped within one unified digital ecosystem. This integrated platform will prevent duplication, identify infrastructure gaps and ensure that public investments contribute towards measurable saturation outcomes.
A New Allocation Formula for Balanced Development
Another important reform under VB-GRAM-G is the introduction of a normative allocation framework for the distribution of funds among States. Unlike MG-NREGS, which largely followed a demand-driven approach, annual allocations under the new framework will increasingly be guided by objective parameters recommended by the 16th Finance Commission for fair distribution of funds across states.
These include factors such as population, demographic performance, forest cover, geographical area, per capita Gross State Domestic Product distance and contribution to the national economy. Greater weightage has been assigned to the states that have historically lagged behind economically, bridging the regional divide. At the Gram Panchayat level, allocations will also be guided by indicators such as the Panchayat Advancement Index, employment performance and developmental gaps, thereby aligning public investment with the principles of equity, saturation and need-based planning.
New Opportunity for J&K
For J&K, the new funding mechanism presents a significant opportunity. J&K currently has more than 1 million job cards and generated nearly 44 million working days during the previous financial year. Significantly, this contribution was achieved despite the average employment generated being only around 44 working days per job card against the earlier statutory ceiling of 100 days. With the legal guarantee now enhanced to 125 days under the new scheme, there exists considerable scope to expand employment generation and increase the state’s share in national programme outcomes. As J&K continues to enjoy a favourable Centre-State funding ratio of 90:10, the fiscal burden on the State exchequer remains relatively limited, enabling greater leveraging of Central resources for rural development.
However, under the emerging normative allocation framework, future resource flows are likely to depend not only on demand but also on objective development indicators and performance parameters. This calls for a strategic approach centred on expanding job card coverage by enrolling all eligible rural households and improving programme performance. Equally important will be the need to deepen convergence with allied sectors such as agriculture, horticulture, livestock, forestry and irrigation so that wage employment translates into durable community assets and sustainable livelihood opportunities. Such an approach can position J&K to derive maximum benefit from the new architecture while accelerating the broader objectives of rural transformation.
Performance Matters
VB-GRAM-G also introduces a performance-linked incentive framework. From the second year of implementation onwards, a part of the normative allocation is proposed to be linked to the performance of States and implementing agencies. Key performance indicators are expected to include timely payment of wages, compliance with social audit requirements, completion rate of sanctioned works and other governance-related benchmarks. The objective is to strengthen accountability, improve service delivery and encourage better programme management while ensuring that rural households continue to receive their statutory employment entitlements in a timely and transparent manner.
The funding mechanism has also been streamlined. Under the previous framework, different expenditure components were shared separately between the Centre and States. VB-GRAM-G adopts a simpler funding pattern, with expenditure shared in the ratio of 60:40 between the Centre and States for General States and 90:10 for North-Eastern and Himalayan States, including J&K. This special dispensation recognises the unique geographical and developmental challenges faced by hill regions and ensures continued financial support for rural employment and infrastructure creation.
Four Thematic Domains for Asset Creation
The programme identifies four thematic domains for rural asset creation to ensure comprehensive and sustainable development:
Domain-1: Water Security. This encompasses watershed management, groundwater recharge, irrigation infrastructure, afforestation, and the rejuvenation of water bodies. Given the increasing frequency of droughts, floods, and erratic weather patterns, strengthening water security has become indispensable for sustainable rural development.
Domain-2: Core Rural Infrastructure. This addresses essential public assets, including rural roads, Gram Panchayat buildings, Anganwadi centres, school infrastructure, sanitation facilities, and renewable energy systems.
Domain-3: Livelihood-Related Infrastructure. This emphasizes creating productive assets that support agriculture, livestock, fisheries, self-help groups, storage infrastructure, rural markets, and value chains. The objective is to move beyond wage employment towards sustainable and diversified rural livelihoods.
Domain-4: Mitigation of Extreme Weather Events. As climate change increasingly affects rural communities through floods, landslides, droughts, and other disasters, this domain provides for mitigation and adaptation works such as flood protection structures, disaster shelters, slope stabilisation measures, and the restoration of damaged community assets.
Another significant innovation is the introduction of a peak agricultural season pause. States will notify specific periods during sowing and harvesting seasons when new works will not ordinarily commence. This provision aims to ensure adequate labour availability for agricultural operations and maintain a balance between public employment programmes and the rural farm economy.
Transparency and Inclusion
Technology constitutes the backbone of the new programme. VB-GRAM-G adopts a digital-first architecture, enabling end-to-end transparency in implementation. By leveraging biometric attendance and geospatial mapping platforms like Bhuvan and Yuktdhara, the system makes it nearly fool-proof for planning and monitoring.
Importantly, the rights-based character of the programme remains unchanged. Employment must still be provided within 15 days of demand. Failure to do so will continue to attract payment of the unemployment allowance. Wages will be transferred directly into workers’ bank or post office accounts through robust Direct Benefit Transfer mechanisms, with delay compensation automatically calculated wherever payments are delayed.
The programme also retains and strengthens social accountability mechanisms. Gram Sabhas will continue to conduct social audits. Weekly disclosures of works, payments and grievances will be made publicly available. Ombudspersons, multi-tier grievance redressal systems and statutory penalties for violations further reinforce accountability.
VB-GRAM-G also places strong emphasis on inclusion. At least one-third of beneficiaries must be women, while vulnerable categories, including single women, persons with disabilities, elderly citizens, tribal communities and other disadvantaged households will receive priority in work allocation and asset creation.
As India advances towards the vision of Viksit Bharat @2047, rural development programmes must evolve to meet emerging challenges and aspirations. VB-GRAM-G represents such an evolution. It preserves the employment guarantee that has protected millions of rural households while simultaneously creating a framework for integrated infrastructure development, climate resilience and sustainable livelihoods.
