The VB-G RAM G Bill 2025 replaced MGNREGA, reshaping India’s rural employment framework. This explainer breaks down key changes, the new Centre–State funding pattern, and the political debate over federalism and workers’ rights.
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NEW DELHI: The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G Bill) has formally replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, marking one of the most crucial shifts in India’s rural employment policy in two decades.
After receiving President Droupadi Murmu’s assent, the new law has come into force, aligning rural employment guarantees with the government’s Viksit Bharat 2047 vision. While the Union government has projected the reform as an expansion and rationalisation of benefits, the Opposition has described it as a dilution of a landmark rights-based welfare law.
Let’s explore what the VB-G RAM G Act is, how it differs from MGNREGA, and why it has triggered political and federal tensions.
What Is the VB-G RAM G Act, 2025?
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) is a new statutory framework for rural employment generation. It replaces MGNREGA, which, since 2006, guaranteed 100 days of demand-based wage employment to rural households.
According to the government, VB-G RAM G seeks to:
- Improve the quality of assets created in rural areas
- Align employment with livelihood creation and climate resilience
- Promote cooperative federalism through shared financing
- Reduce seasonal labour shortages in agriculture
Changes Under VB-G RAM G Compared to MGNREGA
1. Employment Guarantee Increased to 125 Days
One of the most highlighted changes is the increase in guaranteed employment from 100 days to 125 days per financial year.
The government argues that under MGNREGA, the 100-day guarantee often functioned as a hard ceiling rather than a minimum, and only a small percentage of households ever reached the full entitlement. By increasing the limit, the Centre claims it is expanding opportunities for rural workers.
However, critics point out that raising the ceiling does not automatically increase actual employment, especially if allocations are capped.
2. Weekly Wage Payments Instead of 15 Days
Under MGNREGA, wages were to be paid within 15 days. The VB-G RAM G Act introduces weekly payments, which the government says will:
- Improve cash flow for rural households
- Reduce distress borrowing
- Increase transparency and accountability
This provision has largely been welcomed across the political spectrum.
3. 60-Day No-Work Period During Peak Agricultural Seasons
For the first time, the new law allows employment to be paused for up to 60 days during peak sowing and harvesting periods, as notified by State governments.
The rationale is to:
- Ensure adequate availability of farm labour
- Address farmers’ complaints about labour shortages caused by public works schemes
Opposition parties argue that this undermines the unconditional nature of the employment guarantee, which was central to MGNREGA’s design.
4. Shift From Demand-Driven to Allocation-Based Framework
MGNREGA was a demand-driven, rights-based scheme, where employment had to be provided whenever demanded, failing which workers were entitled to unemployment allowance.
Under VB-G RAM G:
- The Central Government will determine State-wise normative allocations
- States must bear the cost of any excess demand
- The scheme is now officially categorised as a Centrally Sponsored Scheme
Critics say this transforms the programme into a supply-driven welfare scheme, weakening workers’ legal entitlements.
5. Major Change in Funding Pattern
Under MGNREGA:
- 100% of unskilled wage costs were borne by the Centre
- States contributed to the material and administrative costs
Under VB-G RAM G:
- The general funding pattern is 60:40 (Centre: State)
- Hilly and North-Eastern states, earlier funded at 90:10, lose special treatment
- Union Territories without legislatures will receive 100% Central funding
The Centre argues this promotes state ownership and fiscal responsibility, while States warn it could reduce participation due to weak finances.
6. Narrowing of Permissible Works
VB-G RAM G limits employment to four defined verticals:
- Water security
- Core rural infrastructure
- Livelihood-related assets
- Climate resilience works
The government says this will improve the durability and productivity of assets.
Opposition leaders argue that it restricts local flexibility, a cornerstone of decentralised planning under MGNREGA.
The Bill was passed in the Lok Sabha amid strong protests from Opposition parties. Key objections include:
- Removal of Mahatma Gandhi’s name, seen as a symbolic erosion of Gandhian principles
- Alleged centralisation of power, undermining Panchayati Raj institutions
- Weakening of the rights-based framework of rural employment
- Increased financial burden on States already under fiscal stress
Congress leaders Rahul Gandhi and Priyanka Gandhi have argued that the new law breaks the link between MGNREGA and Gandhi’s concept of Gram Swaraj, which emphasised grassroots democracy and decentralisation.
States such as Tamil Nadu and Kerala have opposed the Bill, citing encroachment on State autonomy.
The BJP-led Union government maintains that:
- The reform is aligned with Viksit Bharat @2047
- Asset-focused employment will create long-term rural prosperity
- Cooperative federalism requires States to share responsibility
- Seasonal pauses prevent distortion of agricultural labour markets
Rural Development Minister Shivraj Singh Chouhan has stated that the new framework reflects the spirit of good governance and Ram Rajya, even without Gandhi’s name.