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Relevance: GS-II (Welfare Schemes, Social Justice, e-Governance); GS-III (Indian Economy, Rural Employment) Source: Ministry of Rural Development / LibTech India, 2026

New Rural Job Scheme (VB-G RAM G): Why Are Millions of Workers Dropping Out?

1 · What is the news in simple words?

On July 1, 2026, India’s historic rural job guarantee scheme (MGNREGS) was officially upgraded and renamed as the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin (VB-G RAM G).

However, just two weeks into the transition, a research study by LibTech India revealed a shocking trend: over 67 lakh registered workers and 26 lakh active workers suddenly vanished from the official rolls! This massive drop has sparked a debate on whether digital technology is accidentally locking poor villagers out of their daily bread.

2 · What Caused the Drop: Clean Data or Digital Exclusion?

Under the new rules, daily attendance and wages require strict digital verification. Experts fear a problem called “Digital Omission,” where genuine laborers lose their job cards purely due to technical mismatches:

The Numbers Game
67 Lakh Cards Deleted
In just 15 days, total enrolled workers fell from 27 crore to 26.33 crore. Most deletions occurred in three states: Uttar Pradesh (8 lakh), Telangana (7.2 lakh), and Bihar (6 lakh).
The Tech Hurdle
e-KYC & Face Recognition
New tools like mandatory e-KYC and Facial Recognition Systems (FRS) often fail for poor rural laborers whose fingerprints or facial features change due to age, poor lighting, or hard manual labor in the fields.
Lack of Transparency
Why Were They Removed?
The official portal does not explain why a worker was removed. It fails to show whether the worker got prior notice, or if the village assembly (Gram Sabha) verified the deletion as required by law.
Government’s Defense
Routine Data Cleaning
The Ministry argues that this is just routine database cleaning by State governments to remove fake or duplicate names, and that over 1.91 lakh workers have already received new cards smoothly without issues.

  • Bypassing the Gram Sabha: Under our Panchayati Raj laws, the local village assembly (Gram Sabha) has the supreme right to verify and audit job cards. Deleting names automatically from a central computer server bypasses grassroots democracy.
  • The Way Forward: The government must create a simple “no-fault override window” at the Panchayat level, allowing local officials to manually verify and mark attendance when digital tools fail, ensuring no poor worker goes hungry due to server errors.

UPSC Prelims Quick Facts
Article 41 (DPSP) Directs the State to secure the Right to Work within the limits of its economic capacity. Rural job schemes are the primary statutory tool fulfilling this constitutional promise.
VB-G RAM G Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin. Enforced in July 2026, it replaces MGNREGS while retaining the legal guarantee of demand-driven rural employment.
73rd Amendment Act Gives constitutional status to Panchayati Raj Institutions (PRIs) and empowers the Gram Sabha to conduct social audits of rural welfare schemes.
Active vs. Registered Registered workers are all who enrolled for a job card.
Active workers are those who have officially worked at least once in the preceding three financial years.

MCQ Practice Question
Q. With reference to rural employment guarantee schemes and constitutional provisions in India, consider the following statements:

  1. Article 41 of the Indian Constitution, enshrined as a Directive Principle of State Policy, directs the State to secure the right to work within its economic capacity.
  2. Under the decentralized framework of rural employment laws, the Gram Sabha has the statutory authority to conduct social audits and verify job cards.
  3. The newly introduced VB-G RAM G scheme has completely abolished the legal guarantee of demand-driven rural employment.

Which of the statements given above is/are correct?
(a) 1 and 2 only    (b) 2 and 3 only    (c) 1 and 3 only    (d) 1, 2 and 3

Answer: (a) 1 and 2 only

  • Statement 1 — Correct: Article 41 in Part IV (DPSPs) obligates the State to secure the right to work, education, and public assistance in cases of unemployment or distress.
  • Statement 2 — Correct: Grassroots governance under the 73rd Constitutional Amendment empowers Gram Sabhas to independently audit, verify, and monitor beneficiaries of rural schemes.
  • Statement 3 — Incorrect (the trap): While MGNREGS transitioned into VB-G RAM G with new digital verification measures, the core statutory principle of providing a legal guarantee of demand-driven wage employment remains fully intact.
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