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Budget 2024-25: Strategic ₹95,000 Crore Infusion for VB-G RAM G Initiative, MGNREGA Receives ₹30,000 Crore Transitional Allocation

Agency Source: Economy News, Latest Economic News Today | The HinduBusinessLine Bureau Release: February 1, 2026 | 10:35 IST
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In a decisive fiscal maneuver, the Union Budget has earmarked a substantial ₹95,000 crore for the ambitious VB-G RAM G (Village-Based Gramin Resource Augmentation and Management Grid) initiative, signaling a major pivot in rural development strategy. Concurrently, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme has been allocated ₹30,000 crore, framed as a transitional measure to ensure continuity until the VB-G RAM G framework is fully operationalized and pending projects are concluded. This allocation structure underscores a calculated shift from a primarily employment-guarantee model toward a more integrated, technology-driven resource management and infrastructure development paradigm. The VB-G RAM G funding represents a cornerstone investment aimed at systemic modernization of rural economies, while the MGNREGA allocation is strategically positioned to bridge the implementation gap, mitigate workforce displacement, and complete legacy projects. This dual-track approach reflects a nuanced policy calibration, balancing immediate social welfare imperatives with long-term strategic infrastructure goals. The substantial disparity in allocations highlights the administration's prioritization of the new, transformative grid system as the future backbone of rural revitalization, with MGNREGA transitioning into a complementary, time-bound support mechanism during the phased rollout.

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