President Droupadi Murmu has officially approved the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB—G RAM G) Bill, 2025, thereby enacting it into law and replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This marks a major shift in India's rural employment policy framework. The VB-G RAM G Act aims to enhance livelihood security and aligns with the government's vision of Viksit Bharat @2047.
Key Changes Introduced by the VB-G RAM G Act:
- Increased Employment Guarantee: The new legislation increases the guaranteed wage employment from 100 days to 125 days per financial year for rural households whose adult members volunteer to do unskilled manual work. This enhancement is projected by the government as an expansion of benefits, designed to strengthen income security and provide more predictable work for rural families.
- Funding Architecture: A significant change is the funding arrangement between the central and state governments. Unlike MGNREGA, where the wage component was fully funded by the Centre, the VB-G RAM G Act mandates a 60:40 cost-sharing arrangement between the Centre and states. For North Eastern and Himalayan States, the ratio will be 90:10, while Union Territories without legislatures will receive 100% central funding. The government believes this will foster cooperative federalism and greater state ownership of outcomes.
- Focus on Asset Creation: The VB-G RAM G Act aims to integrate employment generation with the creation of durable and productive rural assets. Permissible works will concentrate on water security, core rural infrastructure, livelihood-related assets, and climate resilience. The government intends to improve the quality and durability of assets created under the scheme. All assets will be mapped and integrated into a national rural infrastructure platform.
- Flexibility in Implementation: States now have the flexibility to pause employment for up to 60 days during peak sowing and harvesting seasons to ensure sufficient farm labor availability.
- Wage Payment Timelines: The Act mandates tighter timelines for wage payments, requiring workers to be paid weekly or within 15 days of work completion, with mandatory delay compensation.
- Decentralized Governance: The new framework seeks to deepen decentralized, participatory governance. Gram panchayats and gram sabhas will have greater authority in deciding local development works.
- Technology Integration: To improve transparency, technology-driven tools like biometric authentication, geo-tagging, and real-time monitoring dashboards are being introduced.
Criticism and Opposition:
The VB-G RAM G Bill has faced criticism from opposition parties, particularly regarding the omission of Mahatma Gandhi's name and concerns that the bill dilutes the rights-based core of MGNREGA. Some argue that it centralizes decision-making, weakens workers’ entitlements, and transforms the employment guarantee into a quota-based system controlled from Delhi. Concerns have also been raised about the reduced central funding share and the potential impact on vulnerable populations.
Government Response:
Rural Development Minister Shivraj Singh Chouhan has dismissed these criticisms, asserting that the VB-G RAM G scheme is a step ahead of MGNREGA and guarantees employment for workers. He stated that over ₹1,51,282 crore will be allocated to ensure adequate funds for rural employment. The ministry emphasizes that the Act modernizes governance and accountability, linking wage employment with productive asset creation.
The VB-G RAM G Act is a centrally sponsored scheme, with cost-sharing between the Centre and States. It reinforces the right to demand employment while enhancing decentralized governance. The government aims to lay the foundation for a prosperous and resilient rural India through this new framework.
