Economy · 20 Aug 2026

VB-G RAM G Act minimum wage

With reference to the transition from MGNREGA to the VB-G RAM G scheme, consider the following and identify the correct statement:

AThe VB-G RAM G Act sets a minimum wage norm of ₹300 per day, compared to MGNREGA's earlier norm of ₹100 per day at 2009-10 prices

BThe VB-G RAM G Act was passed in December 2025 and its implementing Rules were also finalised in the same month

CThe new scheme follows an 80:20 Centre-State cost-sharing model, up from MGNREGA's earlier 60:40 model

DPerson-days generated under the scheme rose by 43% between April and July 2026 compared to the same period in the preceding two years

This question is based on: When "Transition Friction" Is a Euphemism for Negligence

Take this in full test mode → Instructions for 20 Aug 2026

About this question

Why in news

Despite a roughly 70% larger allocation (₹95,692 crore interim, ₹1.5 lakh crore projected total), person-days generated under the rural employment guarantee fell by 43% between April and July 2026, because implementing Rules for the new VB-G RAM G scheme were finalised only in late June 2026, well after the announced April 1 transition date.

Why for UPSC

UPSC Prelims regularly tests precise wage norms, cost-sharing ratios and enactment dates of welfare legislation - distinguishing a genuinely correct figure from three plausible-sounding but incorrect variants is a classic Prelims discrimination pattern.

Prelims summary

VB-G RAM G Act (passed December 2025) sets a ₹300/day minimum wage against MGNREGA's earlier ₹100/day (2009-10 prices); it retains a 60:40 Centre-State cost-sharing model; person-days fell 43% in April-July 2026 due to delayed Rules.

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