The two-decade-old MGNREGS will come to an end on July 1st of this year with the launch of the Viksit Bharat – Guarantee for rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) scheme, which will use the same "objective parameters" for the normative allocation of funds.
The draft of the Objective Parameters for Normative Allocation Rules, 2026 was posted by the Ministry of Rural Development on Friday, with a 30-day deadline for public comments. "The Central Government shall, for each fiscal year, determine the normative allocation of the funds for every State based on the objective parameters specified in these rules," according to the draft regulations.

Subrule 4(1) of the draft rules states that "the Central Government shall adopt the objective parameters used for horizontal devolution among States as recommended by the Sixteenth Finance Commission and accepted by the Government of India for the purpose of determining normative allocation for each financial year."
According to the draft rules, starting immediately after the first year of the Act's implementation, a portion of normative allocation, as determined by the central government, may also be determined based on the following performance criteria: timely wage payment; compliance with social audit requirements; the percentage of completed work in the final year; and any other performance-related indicators that the central government may specify from time to time.

According to the draft rules, the central government will determine the normative allocation for Union territories for which horizontal devolution is not applicable based on the performance criteria specified in sub-rule (3) of rule 4 and any additional criteria that the central government may deem appropriate.
The 16th Finance Commission's recommended formula for horizontal development is based on six parameters: population (17.5% weight), demographic performance (10% weight), area (10%), forest (10% weight), per capita Gross State Domestic Product Distribution (42.5%), and contribution to GDP (10%).