Now Reading: VB-G RAM G rural employment halves in July 2026
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VB-G RAM G rural employment halves in July 2026
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…
The Story in Brief
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.
The Indian Opinion
The 50 per cent drop is being spun as a seasonal blip, but the evidence points to deeper problems. The new 40 per cent state funding share strains already cash-strapped governments, and the pause option lets them sidestep demand. Meanwhile, the promise of 125 days of work rings hollow when even the old 100-day guarantee averaged only 50 days. The real test will come after the kharif harvest: will employment rise again, or will states quietly keep the scheme paused? Watch the October numbers.
Source: thefederal.com
This story was synthesised by AI from the source linked above.
