VB–G RAM G Bill 2025: Recasting India’s Rural Employment Guarantee Framework
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB–G RAM G] Bill, 2025 marks a decisive shift in India’s rural employment policy. By proposing to replace the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the Bill attempts to move India from a relief-oriented employment guarantee model to a mission-mode livelihood and rural development framework, aligned with the long-term vision of “Viksit Bharat @ 2047.”
The Bill was introduced in the Lok Sabha on 16 December 2025 and passed by both Houses on 18 December 2025, making it a major contemporary development for aspirants tracking welfare reforms, rural policy, and federal fiscal relations.
What is VB–G RAM G?
VB–G RAM G is a new statutory framework that seeks to:
- Replace MGNREGA with a development-oriented employment and livelihood mission
- Integrate wage employment with durable rural assets, infrastructure, and livelihood security
- Strengthen local planning through Panchayats
- Ensure convergence with agriculture, water conservation, and poverty-reduction programmes
Unlike MGNREGA, which primarily functioned as a rights-based safety net, VB–G RAM G is designed as a mission-linked, outcomes-focused rural employment system.
Key Features of the VB–G RAM G Bill, 2025
1. Increased Guaranteed Employment Days
- Statutory guarantee raised from 100 to 125 days of wage employment per financial year
- Applicable to every rural household whose adult members volunteer for unskilled manual work
- Intended to enhance income security during lean agricultural periods
2. Centrally Sponsored Scheme (CSS) Structure
- VB–G RAM G will operate as a Centrally Sponsored Scheme, unlike MGNREGA
- Cost-sharing pattern:
- 60:40 between Centre and States
- 90:10 for North-Eastern and Himalayan states
- Cost sharing applies to wages, materials, and administrative expenses
- States will continue to bear the responsibility for unemployment allowance
3. Mandatory State-Level Schemes
- Every state government must notify its own scheme within six months of the Act’s commencement
- Ensures flexibility in implementation while maintaining a uniform national framework
4. Planning Through Viksit Gram Panchayat Plans (VGPPs)
- Works to be identified through VGPPs prepared by Gram Panchayats
- Plans to be integrated with national spatial planning and GIS systems
- Aims to strengthen decentralised planning and convergence with other rural schemes
5. Institutional Oversight Mechanism
- Establishment of a Central Gramin Rozgar Guarantee Council
- Corresponding State Councils for monitoring, review, and policy guidance
- Intended to improve accountability, coordination, and outcome tracking
VB–G RAM G vs MGNREGA: Key Differences
| Aspect | MGNREGA (2005) | VB–G RAM G Bill (2025) |
|---|---|---|
| Guaranteed work days | 100 days per year | 125 days per year |
| Funding pattern | Centre bore most wage costs | CSS: 60:40 (90:10 special states) |
| Legal orientation | Rights-based employment guarantee | Mission-linked development framework |
| Planning | Annual plans, Gram Sabha role | VGPPs + spatial planning |
| Core focus | Wage employment & basic assets | Employment + livelihoods + convergence |
Many analysts point out that while employment days increase, the financial burden on states also rises, which could affect demand generation and timely payments, especially in fiscally weaker states.
Claimed Benefits of the Bill
Enhanced Livelihood Security
- Higher guaranteed days can provide greater annual income stability
- Particularly beneficial for landless labourers and marginal farmers
Better Planning and Asset Quality
- VGPP-based planning aims to create useful, durable assets
- Stronger alignment with agriculture, irrigation, and infrastructure needs
Technology-Driven Transparency
- Emphasis on geo-tagging, online MIS, and digital monitoring
- Designed to reduce leakages and improve service delivery
Concerns and Criticisms
Increased Fiscal Stress on States
- 40% cost sharing may strain poorer states
- Risk of delayed wage payments or restricted work availability
Possible Dilution of Demand-Driven Nature
- Critics fear the shift to mission-mode planning may weaken the right-to-work principle
- Employment may become more supply-driven than demand-driven
Seasonal and Operational Constraints
- Proposed seasonal pauses and tighter timelines could limit flexibility
- Workers may lose access to employment during peak distress periods
These debates make VB–G RAM G a critical issue in discussions on welfare design, rights-based legislation, and cooperative federalism.
UPSC Relevance
GS Paper II
- Welfare schemes
- Federal relations
- Role of Panchayats
- Rights-based vs mission-based legislation
GS Paper III
- Rural development
- Employment generation
- Inclusive growth
- Public finance and fiscal federalism
Essay / Interview
- “Future of rural employment guarantee in India”
- “Rights vs targeted welfare”
- “Viksit Bharat @2047 and inclusive development”
Aspirants should be able to:
- Explain why MGNREGA is being replaced
- Analyse changes in funding, planning, and governance
- Critically assess benefits versus risks for rural livelihoods
Frequently Asked Questions (FAQs)
Q1. Why is MGNREGA being replaced?
To shift from a relief-focused employment guarantee to a mission-mode approach linking jobs with long-term livelihoods and rural development.
Q2. Does VB–G RAM G reduce employment entitlement?
No. It increases guaranteed days from 100 to 125, but changes the funding and implementation structure.
Q3. What is the biggest concern with the new Bill?
The increased financial burden on states and the possible dilution of the demand-driven right to work.
Q4. Is VB–G RAM G relevant for UPSC Prelims?
Yes, especially for questions on welfare schemes, federal funding patterns, and rural development reforms.
