Economic Survey 2025-26: Decline in work demand forced govt to enact VB-G RAM G

New Delhi: Acknowledging the MGNREGS once provided wage employment and stabilised rural income, the Economic Survey on Thursday said that recent trends reveal a notable decline in work demand under the scheme. 

“While MGNREGS has long served as a critical safety net for rural households, recent trends reveal a notable decline in work demand under the scheme. Person days declined significantly from a pandemic peak of 389.09 crore person days in FY21 to approximately 183.77 crore in FY26 (up to December 31, 2025), representing a decline of more than 53 per cent,” the Survey said.

Following  decline in work demand the government enacted the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, or VB-G RAM G, which is a comprehensive statutory overhaul of the earlier scheme, the Economic Survey said.

Over the years the nature of rural employment requirements transformed, emphasising both the programme’s achievements and the need to reassess its design and aims.

Over time, increasing incomes, enhanced connectivity, widespread digital adoption, and diversified livelihoods have transformed the nature of rural employment requirements, the Survey said, emphasising both the programme’s achievements and the need to reassess its design and aims.

The Survey also pointed out that deeper structural issues persisted in MGNREGS, and monitoring in several states revealed gaps, including work not being done on the ground, expenditure not matching physical progress, the use of machines in labour-intensive work, and frequent bypassing of digital attendance systems.

“The new Act represents a significant upgrade over MGNREGA, fixing structural weaknesses while enhancing employment, transparency, planning, and accountability,” it said.

The VB-G RAM G Bill was passed in Parliament winter session. 

On December 21, President Droupadi Murmu gave her assent to the Bill, making it an Act, which replaced the rural employment law, MGNREGA, guaranteeing 125 days of wage employment per rural household every financial year.