# VB-G RAM G rural employment halves in July 2026

2026-08-14T02:15:06+00:00 | Governance | Indian Opinion Desk

Corroboration: 1 independent outlet

Rural employment under VB-G RAM G, the successor to MGNREGA, fell by nearly 50 per cent in July 2026 compared with the same month a year earlier. The sharp drop is attributed to a combination of factors, including a new funding arrangement that requires states to bear 40 per cent of wage costs upfront, and a provision allowing states to pause the scheme for up to two months a year, according to thefederal.com. Professor Santosh Kumar Mehrotra, a developmental economist, said seven states, Bihar, Odisha, Gujarat and four north-eastern states, paused the scheme in July. He also noted that the number of workers dependent on agriculture has risen to about 280 million from 200 million in 2019, increasing the demand for rural jobs. Former secretary Siraj Hussain pointed out that July was the first month of implementation and states may not be fully geared, while budget allocations do not guarantee actual spending.

## Coverage

- thefederal.com <https://thefederal.com/category/news/vb-g-ram-g-rural-employment-50-percent-drop-253391>

Tags: agriculture, employment guarantee, MGNREGA, rural employment, state finances, VB G RAM G
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