Budget 2024: Government Allocates ₹95,000 Crore for New Rural Employment Initiative, Replacing MGNREGA Framework

The Union Budget has unveiled a significant restructuring of India's rural employment architecture, with the newly introduced VB-G RAM G scheme receiving a substantial allocation of over ₹95,000 crore. This initiative, designed to provide 125 days of employment annually, formally supersedes the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) program established during the previous administration. Concurrently, the outgoing MGNREGA framework has been allocated ₹30,000 crore, likely earmarked for transitional and legacy obligations. This strategic pivot represents a major policy shift, moving from the UPA-era guaranteed employment model to a more targeted, outcome-oriented program. The enhanced budgetary commitment to VB-G RAM G signals the government's prioritization of rural economic revitalization and employment generation, with a focus on potentially linking wages more directly to asset creation and skill development. Analysts will be closely monitoring the implementation framework, particularly the mechanisms for ensuring the promised 125 days of work and the scheme's integration with broader rural development goals. The transition period and the concurrent funding for MGNREGA will be critical to maintaining continuity in rural livelihoods.