Prateek Tanmay
2 min readNew DelhiUpdated: Jun 10, 2026 05:04 AM IST
The Centre on Tuesday announced interim allocation for states out of the Central outlay of Rs 95,692.31 crore for the financial year 2026-27 under the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act 2025 — VB-G RAm G — with Uttar Pradesh getting the highest share of Rs 9,721.48 crore, followed by West Bengal at
Rs 8,508 crore.
Announcing the decision, Union Rural Development Minister Shivraj Singh Chouhan said the allocation has been made based on the states’ last year expenditure under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MG-NREGS).
The move comes days after the Ministry of Rural Development released a set of draft rules to implement the new rural job guarantee scheme under the VB-G RAM G law from July 1, 2026. As per the draft rules, the Centre shall adopt the objective parameters used for horizontal devolution among states as recommended by the 16th Finance Commission and accepted by the Government of India to make normative allocation of funds under the VB-G RAM G scheme. The VB-G RAM G rules are yet to become effective but the ministry has announced interim allocation of funds to the states under the scheme.
Chouhan earlier held a video conference with the rural development ministers of the states. “Not a single worker should remain without work even for a day,” Chouhan said, adding that disruption in employment generation, wage payments or statutory rights would not be acceptable.
The Centre has made an outlay of Rs 95,692.31crore for the VB—G RAM G scheme during the financial year 2026-27. Unlike the MG-NREGS, where the Centre paid 100 per cent of the wage bill, the VB-G RAM G is a Centrally sponsored scheme with the fund sharing ratio of 60:40 between the Centre and states, and 90:10 for states in northeastern region, Himalayan states and UTs with legislature and 100% central share for Union Territories without legislature.
