First Month of VB-G RAM-G Delivers Sharp Decline in Rural Work

The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen) — VB-G RAM-G — which replaced the long-standing MGNREGA on 1 July 2026, had a muted start in its first month of nationwide operations. Data from the scheme’s website as of 11 August shows that just 7.96 million persondays of work were generated in July 2026. That is a stark 55 per cent drop compared with the roughly 17.7 million persondays recorded under MGNREGA in July 2025.

Household demand also weakened significantly: about 10 million rural households sought work under the new scheme, 39 per cent fewer than the number that turned up under the old scheme a year earlier. While the government says it provided employment to over 99 per cent of those who demanded work, the sharp decline in overall participation has raised questions about the reach and acceptance of VB-G RAM-G in its initial month.

The Ministry of Rural Development attributed the soft launch numbers to the agricultural sowing season and the southwest monsoon, which typically reduce dependence on public works jobs. Officials also pointed to transition challenges as states adjusted to the new scheme’s framework. However, the 55 per cent drop in persondays contrasts sharply with the government’s assertion of a seamless transition from MGNREGA.

What the July Numbers Reveal About the Switch from MGNREGA

Behind the 55% Plunge: More Than Just Sowing Season?

The July-to-July drop is large, but seasonal patterns are real. MGNREGA demand typically softens during peak sowing months. Still, a halving of persondays suggests the new scheme may be facing structural friction. Early data does not capture whether the programme’s changed eligibility criteria, wage rates or work-mix are discouraging workers. Some states may have been slower to roll out worksites or register projects under the new Act.

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Fewer Households Seeking Work: A Demand-Side Signal

The 39 per cent fall in households demanding work is equally significant. If it persists, it could indicate either confusion about the new scheme’s application process, a shift in rural households’ expectations, or genuine improvements in alternative earning opportunities. Given that VB-G RAM-G incorporates a skilling and livelihoods component, some workers may be waiting for those elements to launch rather than signing up for unskilled manual work.

Government’s “Seamless Transition” Claim Faces Scrutiny

The Centre has maintained that over 99 per cent of work-seekers were employed, implying that supply of works kept pace with demand. But if demand itself collapsed, that high fulfilment rate masks the real story. The contrast between the official narrative and the first-month numbers will put pressure on the government to show a recovery in August and September, especially as the monsoon wanes.

One Month Is Too Early — But the Baseline Matters

Experts caution that a single month’s data cannot be used to judge a multi-year programme. Yet the July 2026 figures will form the baseline for future comparisons. As more states fully operationalise the scheme and the kharif season ends, the true trajectory of VB-G RAM-G will become clearer. The next two months’ data will be critical in determining whether the launch-phase dip was temporary or indicative of deeper design challenges.

What to Watch as the New Rural Jobs Scheme Matures

  • Track August 2026 persondays and household demand to see whether the July slide was purely a seasonal blip.
  • Examine state-wise variation: early data suggests some states have been slower to notify the scheme, which could skew national figures.
  • Monitor uptake of livelihood and skilling components — VB-G RAM-G’s distinguishing features — once they become operational, as they may draw workers away from manual works.
  • Compare wage levels and work allocation with MGNREGA benchmarks to gauge whether workers are voluntarily opting out.
  • For rural households, verify local worksite availability through gram panchayats, especially as post-monsoon projects begin, because the application process under VB-G RAM-G differs from the old MGNREGA system.