The Indian government is poised to introduce a new bill, the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G), to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The VB-G RAM G Bill aims to provide enhanced livelihood opportunities and a more robust social safety net for rural households. This proposed legislation is expected to be tabled in the Lok Sabha this week.
A key feature of the VB-G RAM G Bill is the increase in guaranteed wage employment from 100 to 125 days per financial year for every rural household whose adult members volunteer to do unskilled manual work. This increment seeks to provide additional income opportunities for millions of rural families, strengthening their economic resilience.
The new bill also introduces a revised funding model, shifting from the Centre bearing the full cost of unskilled wages under MGNREGA to a shared responsibility between the Centre and states. For most states and Union Territories with legislatures, the cost-sharing ratio will be 60:40 between the Centre and the states. However, for North-Eastern and Himalayan states, including Uttarakhand, Himachal Pradesh, and Jammu and Kashmir, the funding pattern will remain 90:10 between the Centre and the states. This change in funding is a major shift, requiring states to bear a larger share of the financial responsibility.
In addition to increasing the guaranteed employment days and altering the funding structure, the VB-G RAM G Bill aims to ensure quicker wage payments. The bill mandates weekly wage payments, or at most within 15 days, a significant improvement over the 15-day payment window under MGNREGA. This provision is designed to ensure that workers have faster access to income, reducing financial strain. The bill retains the provision for compensation if wages are not paid within 15 days of the closure of the muster roll, with workers entitled to 0.05% of unpaid wages per day beyond the sixteenth day.
The VB-G RAM G bill also proposes a pause in guaranteed employment during peak agricultural seasons. This measure is intended to ensure adequate labor availability for agricultural activities during sowing and harvesting periods. The state governments will notify in advance the specific durations during which work under the bill will not be undertaken.
The government's objective in replacing MGNREGA with VB-G RAM G is to align rural employment policy with the vision of Viksit Bharat @2047. Rural Development Minister Shivraj Singh Chouhan stated that while MGNREGA has provided guaranteed wage employment for the past 20 years, further strengthening is necessary due to the socio-economic transformation in rural areas. The new bill aims to modernize governance through a comprehensive digital ecosystem, focusing on water security, rural infrastructure, livelihood enhancement, and climate adaptation. The bill also stresses empowerment, convergence, and saturation to build a prosperous and resilient rural India.
The proposed legislation has faced criticism from opposition parties, who question the need to remove Mahatma Gandhi's name from the scheme. CPI (M) Rajya Sabha MP John Brittas argued that the government has replaced a rights-based guarantee law with a conditional, centrally controlled scheme that disadvantages states and workers. He also pointed out that the shift in funding patterns would burden states financially.
Despite the opposition, the government believes that the VB-G RAM G Bill will create a more accountable, targeted, and relevant employment framework for today's rural economy. The bill includes provisions for a Central Gramin Rozgar Guarantee Council and State Gramin Rozgar Guarantee Councils to monitor and review implementation. It also proposes a special schedule of rates for vulnerable groups, including women, the elderly, persons with disabilities, and those with debilitating ailments, to enable their participation in suitable categories of work.
