Employment generation under the government’s revamped rural job guarantee programme saw a sharp decline, registering a fall of 49.94 per cent year-on-year in July, as per official data. The drop came as the government transitioned from the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the newly-launched Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G, from July 1 this year.
Official data as on August 9 shows that only 7.67 crore person-days were generated under the VB-G RAM G scheme in July 2026 — which is 49.94 per cent lower as compared to 15.33 crore person-days generated under the MG-NREGS in the same month last year.
Person-day is a unit of measurement based on an ideal amount of work done by a person in one working day.
While the VB-G RAM G dashboard shows 7.67 crore person-days in July, the Ministry of Rural Development said that around 9 crore person-days were generated during the first month of implementation of the scheme.
The number of households who availed the rural job guarantee scheme came down by 51.45 per cent, to 68.94 lakh, in July this year under the VB-G RAM G scheme. Under MGNREGS, the figure stood at 1.42 crore in the same month last year.
The number of households and person-days under the rural jobs scheme have actually been the lowest in the last five years. At 0.68 crore, the average number of households that availed of the VB-G RAM G scheme is less than 40% of the average 1.72 crore households over the previous four years. Similarly, this July’s person-days are also just 35% of 21.56 crore average person-days over the previous four years.
In March 2025, 17.56 crore person-days were generated under NREGS — which was 0.70% lower than 17.69 crore person-days in March 2024. This year-on-year decline in the monthly figure of employment generated under NREGS continued till June 2026, the last month of the UPA-era scheme.
The July slide in employment generation under VB-G RAM G is significant in view of the erratic monsoon. As per the India Meteorological Department (IMD), 50 per cent of the country’s 741 districts have reported deficit-to-serious-deficit rainfall from June 1 to August 3. In such a situation, the rural job guarantee scheme becomes a fallback option for unskilled agricultural labourers.
Even though the new rural job guarantee scheme offers higher wages and more days of work, employment generation has slowed signi- ficantly. This might impact rural demand — crucial for lifting the economy. Due to the erratic monsoon, Kharif crop area coverage has fallen too, posing a challenge to overall agricultural output.
According to the Union Ministry of Agriculture and Farmers Welfare, area coverage under kharif crop was reported at 894.22 lakh hectare as on July 31, 2026 — which was 26.50 per cent lower as compared to 920.72 lakh hectares in the corresponding period last year.
Sources said that one of the reasons for drop in employment generation may be because of a pause in the scheme during the Kharif sowing season. However, there is no data available about pauses in the sowing season.
Responding to an email from The Indian Express, an official with the Ministry of Rural Development said, “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.”
“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.
“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 said.
The official added that around 63% of the total person-days generated so far have been contributed by women, substantially exceeding the statutory requirement of one-third participation.
“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.
The VB-G RAM G scheme provides for guarantee of 125 days wage employment to rural households during a financial year, up from 100 under the NREGS. It also has a provision of pause in employment guarantee for “a total period aggregating to 60 days in a financial year, covering the peak agricultural seasons of sowing and harvesting” during which work will not be undertaken.
Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister’s Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers’ Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More
