Polity Notes

VB-G RAM G Bill, 2025

Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025

● The Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 known as the VB-G Ram G Bill, 2025 aims to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.

● The VB-G RAM G Bill, 2025 proposes replacing MGNREGA with higher work guarantees, capped funding, seasonal pauses and tech-driven accountability, raising federal and fiscal concerns.

Key changes proposed by the Bill

The Bill guarantees 125 days of wage employment per rural household per financial year, up from “not less than 100 days” under MGNREGA which is often capped at 100 due to software limits. Special provisions like extra days for drought areas or forest-dwelling Scheduled Tribes remain under the new Bill, but 125 days becomes the baseline.

Centre-State cost sharing: Under MGNREGA the Centre paid 100% of unskilled wages. Under VB-G RAM G Bill states now share those wages, 90:10 (90% contribution of the Centre and 10% of States) for Northeastern States, Himalayan states and certain UTs and 60:40 (60% contribution of the Centre and 40% of States) elsewhere. UTs without legislatures get 100% Central funding. States previously handled only unemployment allowances, 1/4th material costs and admin expenses.

● The Centre now fixes parameter based funding limits for each state annually. If a state spends more, it must pay the extra itself. This ended MGNREGA’s open system where states asked for funds based on demand by January 31.

60 days Seasonal pause: Jobs stop for up to G0 days a year in state notified sowing and harvest times. These pauses can differ by district, block or local farm zones to ensure farm workers are available but it shortens the time to get the full 125 days.

Village Plans and National Projects: All jobs come from local panchayat plans, combined into the Viksit Bharat National Rural Infrastructure Stack.

These focus on water security, basic roads and facilities, farm livelihoods and weather resilience, linked to PM Gati Shakti for better planning.

What makes VB-G RAM G Bill better than MGNREGA

Aspects MGNREGA VB-GRAM G Bill
No. of guaranteed work days 100 days per rural household 125 days per rural household
Funding for Unskilled wages 100% funding by the Centre 90:10 (90% contribution of the Centre and 10% of States) for Northeastern States, Himalayan states and certain UTs and 60:40 (60% contribution of Centre and 40% of States) elsewhere. UTs without legislatures get 100% Central funding.
Availability Available round the year (no mandatory pause) 60 days pause during peak sowing/harvesting
Budgeting Open ended: Demand driven labour budgets by January 31 Fixed normative allocation, excess paid by the states
Managing Body Rural Development Ministry Central Gramin Rozgar Guarantee Council
Payments Digital but issues with delays. Wages paid within 15 days. Aadhaar based, faster with verification. Weekly disbursement of wages
Audit Manual/Digital monitoring. Social Audit by Gram Sabha AI-enabled fraud detection, GPS tracking, and Biometric authentication. Social Audits twice a year at Gram Panchayat level.
Job card validity Valid for 5 years Valid for 3 years (requires renewal)

● The VB-G RAM G Bill, 2025 represents a major upgrade over the MGNREGA scheme, fixing structural weaknesses while enhancing employment, transparency, planning and accountability.

● While MGNREGA works were scattered across many categories, the new bill focuses on four major types of works: durable assets that support water security, core rural infrastructure, livelihood related infrastructure creation and climate adaptation.

● New transparency measures like AI based fraud detection, central and state steering panels for oversight, focus on four key verticals for rural development, GPS based monitoring, real time Management Information System (MIS) dashboards, weekly disclosures and twice yearly social audits.

● It builds on 99% digital Aadhaar payments with full verification to end delays and theft.

Controversy on VB-G RAM G Bill

● The removal of “Mahatma Gandhi” from the scheme’s name is seen by the opposition as a “deeply ideological” and deliberate insult to the Father of the Nation, aiming to erase his legacy and the scheme’s founding principles.

● The new funding model changes the wage cost-sharing ratio from a largely centrally-funded one to a G0:40 split for most states (and 90:10 for Himalayan/Northeastern states). States argue this places a huge and unviable financial burden on them.

● The Bill replaced decentralized planning that relied on Gram Sabhas to identify local needs with a centralized monitoring system using digital tools, biometrics and AI audits. This is seen as undermining federalism and local autonomy.

Stand of the Government

● The Government defends the VB-G RAM G Bill as a needed upgrade to MGNREGA positioning it as a transformative and modernizing reform aligned with the national vision of “Viksit Bharat @2047”.

Union Minister of Agriculture and Farmers Welfare, Shivraj Singh Chouhan stated that Mahatma Gandhi “resides in our hearts” and the “G RAM G” part of the name (referencing Ram Rajya, a Gandhian ideal) is in accordance with his spirit.

The government claims the new law is a “major upgrade” designed to fix MGNREGA’s structural weaknesses, such as the creation of non-durable assets and delays in wage payments. It aims to create productive, durable rural infrastructure through a unified national framework and digital monitoring (biometrics, AI, etc.) to curb corruption.

● The shared funding model is intended to promote “cooperative federalism” and greater state ownership and accountability.

About MGNREGA

● Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 is one of the largest work guarantee programmes in the world launched in 2005 by the Ministry of Rural development.

● The primary objective of the scheme is to guarantee 100 days of employment in every financial year to adult members of any rural household willing to do public work related unskilled manual work.

● Another aim of MGNREGA is to create durable assets (such as roads, canals, ponds and wells). Employment is to be provided within 5 km of an applicant’s residence and minimum wages are to be paid. If work is not provided within 15 days of applying, applicants are entitled to an unemployment allowance.

Beneficiaries under the scheme include all household members aged more than 18 years and residing in rural areas. The scheme covers the entire country except districts having 100% urban populations.

● MGNREGA has become the world’s largest social welfare programme. Women’s participation has risen from 48% in 2013-2014 to 58% in 2024-2025.