Person-days generated under the new VB-G RAM G scheme fell 49.94 per cent year-on-year to 7.67 crore in July 2026 compared to 15.33 crore under MGNREGS in July 2025.
Beneficiary household participation also dropped by 51.45 per cent, with only 68.94 lakh households finding work in July 2026 against 1.42 crore in the previous year.
The Ministry of Rural Development contested the digital dashboard figures, claiming that around 9 crore person-days were actually generated during the transition month.
The government replaced the Mahatma Gandhi National Rural Employment Guarantee Scheme with the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G, on July 1, 2026. In its first month, employment generation under the revamped rural job guarantee programme declined sharply.
Person-days recorded in July fell 49.94 per cent year-on-year to 7.67 crore, compared to 15.33 crore under the previous scheme in July 2025, official data available on August 9 showed. A person-day serves as a measurement unit reflecting the ideal work volume a single person completes during a working day. Beneficiary household participation also dropped 51.45 per cent year-on-year. Only 68.94 lakh households found work, against 1.42 crore households in July 2025.
Despite the official dashboard displaying 7.67 crore person-days, the Ministry of Rural Development stated that around 9 crore person-days were generated during the period, contradicting the published digital figure.
Employment Hits Five-Year Low
The July figures represent the lowest rural employment levels recorded in five years. The average number of households accessing work stood at 0.68 crore. This figure remains less than 40 per cent of the 1.72 crore average recorded over the previous four years.
Similarly, the 7.67 crore person-days logged in July constitute roughly 35 per cent of the 21.56 crore average person-days generated across the preceding four years.
A year-on-year contraction in monthly employment generation under the predecessor NREGS had been ongoing since March 2025. That month recorded 17.56 crore person-days, marking a 0.70 per cent decline from the 17.69 crore person-days registered in March 2024. This downward trend persisted until June 2026.
Monsoon Deficit and Sowing
The steep drop in rural employment coincided with erratic rainfall patterns across the country. The India Meteorological Department informed that 50 per cent of 741 districts experienced deficit-to-serious-deficit rainfall between June 1 and August 3.
Kharif crop coverage reached 894.22 lakh hectares by July 31, 2026, down 26.50 per cent from the 920.72 lakh hectares sown during the same period last year, data from the Union Ministry of Agriculture and Farmers Welfare showed.
Sources indicated to News18 that the employment reduction might stem from a deliberate scheme pause during Kharif sowing operations. However, official data regarding pauses during the sowing season remains unavailable.
Ministry Defends Seamless Transition
A Ministry of Rural Development official defended the programme's rollout in an email to The Indian Express. "VB-G RAM G Act, 2025 has been implemented successfully across all rural areas of the country with effect from July 1, 2026. The transition from MGNREGA to VB–G RAM G has been smooth, seamless and technology-enabled, with all States/UTs notifying their respective schemes and the complete administrative and digital ecosystem being operationalised before commencement of the programme from day one," the official said, as reported by News18.
Addressing funding allocations, the representative detailed the fiscal commitment. "To facilitate uninterrupted implementation, the Central Government has provided a record Budget estimate of ₹95,692 crore for FY 2026–27, the highest ever for any rural employment programme," the official said.
The ministry maintained that work availability remains high despite the reported numerical drop. "Accordingly, the programme is being implemented effectively nationwide. More than 98% of rural households demanding employment have been offered work. During the first month of implementation, around nine crore person-days have been generated, with attendance being captured through the NMMS using face authentication together with the prescribed exception-handling mechanism in genuine cases. More than 1.33 crore rural workers have been offered employment as per their demands for employment and works are being executed through more than nine lakh active worksites, ensuring adequate availability of employment opportunities," the official added.
Women contributed approximately 63 per cent of the total person-days generated so far. This participation rate significantly exceeds the scheme's statutory requirement reserving one-third of the work for female beneficiaries.
"All provisions of the VB-G RAM G Act have come into force with effect from July 1, 2026, including the statutory provision relating to the notified peak sowing and harvesting season, which is being implemented by the states in accordance with local agro-climatic conditions. The ministry is continuously monitoring implementation through Area Officer visits, regular review meetings, technology-enabled dashboards and field-level feedback," the official said.
New Scheme Rules Explained
The VB-G RAM G scheme structurally expands the base employment commitment. It guarantees 125 days of wage employment per financial year to rural households, compared to 100 days under MGNREGS.
The updated framework introduces a built-in suspension mechanism. It permits a total pause aggregating to 60 days in a financial year covering the peak agricultural seasons of sowing and harvesting.
