New Delhi, July 6 -- The newly launched Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), promises higher rural incomes through 125 days of guaranteed employment and increased wages, but its long-term impact on India's rural economy may depend on whether states can absorb the significantly higher fiscal burden, according to a report by Systematix Research.

The report said the revamped scheme raises the statutory employment guarantee from 100 days to 125 days annually and increases the average daily wage by nearly 10 per cent to Rs 327 from Rs 299. These measures are expected to strengthen purchasing power and support rural de...