Current Affairs
VB-G RAM G Bill 2025: Transforming Rural Employment Under Viksit Bharat 2047
The Union government introduced VB-G RAM G Bill to replace the MGNREGA in the Lok Sabha.
The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025 was introduced in the Lok Sabha on December 16, 2025. This legislation proposes to replace Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) with a framework that aligns rural development with India’s vision of Viksit Bharat 2047.
Understanding MGNREGA
MGNREGA is a rights-based employment policy that guarantees at least 100 days of wage employment each year to rural households willing to undertake unskilled manual work. It seeks to enhance livelihood security, reduce rural poverty, and curb distress migration by providing assured income support.
The programme is demand-driven, with employment generated on request, and emphasises decentralised planning through Panchayati Raj institutions. In addition to income generation, MGNREGA contributes to the creation of durable rural assets such as water conservation structures and roads, while promoting transparency, social audits, and inclusive participation, particularly of women and marginalised groups.
Five Major Changes Proposed in the Bill
Enhanced Employment Guarantee: From 100 to 125 Days
The VB-G RAM G Bill increases the guaranteed workdays from 100 to 125 days per rural household annually. This represents a 25% expansion in employment opportunities for rural families.
Under MGNREGA, the law mandated “not less than 100 days”. The new bill makes 125 days the standard entitlement. Additional days under MGNREGA were granted only during droughts or for specific tribal communities in forest areas.
Agricultural Pause
The bill introduces a 60-day “agricultural pause” during peak sowing and harvesting seasons. State governments can notify in advance which periods will see a suspension of public works under the scheme.
The objective is to ensure agricultural labor availability during farming operations. States can tailor these notifications to districts, blocks, or agro-climatic zones based on local cropping patterns.
60:40 Cost-Sharing Formula
Under MGNREGA, the Central Government bore 100% of unskilled wage costs and 75% of material costs. The VB-G RAM G Bill restructures this arrangement. Every State Government is required to prepare a Scheme for giving effect to the guarantee proposed under this bill,within six months of the commencement of the Act.
It will operate as a Centrally Sponsored Scheme (CSS), with a fund sharing pattern of 90:10 for North-Eastern and Himalayan States/UT and 60:40 for all other States. Union Territories without legislatures continue receiving 100% Central funding.
From Demand-Driven to Budget-Capped: Normative Allocations
The bill replaces MGNREGA’s open-ended “Labour Budget” mechanism with state-wise “normative allocations.”
Under the old system, if actual demand exceeded projections due to monsoon failure or economic distress, the Centre was obliged to provide supplementary funds. The budget responded to demand.
Section 4(5) of the VB-G RAM G Bill empowers the Central Government to determine each state’s normative allocation based on “objective parameters” yet to be prescribed. Section 4(6) stipulates that any expenditure beyond this allocation must be borne by the state government.
Technology-Driven Governance: National Infrastructure Stack
The VB-G RAM G Bill mandates creation of the Viksit Bharat National Rural Infrastructure Stack. All works undertaken under this Bill will be aggregated into the Viksit Bharat National Rural Infrastructure Stack, creating a unified national framework for rural public works.
This integrates Viksit Gram Panchayat Plans with the PM Gati Shakti National Master Plan, ensuring rural works align with national infrastructure priorities. Works are classified in four thematic domains: water security, core rural infrastructure, livelihood-related infrastructure, and disaster mitigation.
The bill mandates biometric authentication for attendance, AI-based fraud detection, GPS tracking of worksites, and weekly public disclosure of scheme data. These measures aim to enhance transparency and accountability.
Key Concerns
Fiscal Impact on States
The 60:40 funding split between the Centre and states creates a structural problem for economically weaker states, those with limited tax revenues but higher rural poverty and greater need for MGNREGA.
Rights vs Budget Constraints
The normative allocation mechanism creates potential friction between MGNREGA’s promise as a legal entitlement and budgetary realities. When allocations are capped in advance, it raises questions about the scheme being a demand-driven, rights-based program.
Technology and Digital Barriers to Access
While biometric authentication and digital systems aim to reduce fraud, they create new barriers for vulnerable workers. Technical failures such as malfunctioning devices, poor fingerprint recognition among manual laborers, server downtimes, or inadequate connectivity in remote areas can prevent eligible workers from accessing employment.
Agricultural Work Moratorium: Conditional Entitlements
The provision allowing states to suspend MGNREGA work during 60-day peak agricultural seasons assumes the agricultural markets will absorb workers. However, this may potentially negatively impact landless laborers and marginal farmers who lack sufficient agricultural work opportunities.
Implementation Gap: Promise vs Reality
While MGNREGA promises 100 days of employment annually, average person-days delivered historically range between 45-55 days per household. This gap reveals challenges in administrative capacity, fund flow, planning, and political will.
Positive Aspects of the Bill
The bill addresses structural weaknesses in MGNREGA. The focus on durable, climate-resilient assets addresses issues about poor asset quality. Integration with national infrastructure planning could enhance rural productivity through improved water management, connectivity, and storage facilities.
For farmers, the agricultural pause may ease labor shortages and reduce wage inflation during critical seasons. The emphasis on livelihood infrastructure like markets, warehouses, and drying yards could reduce post-harvest losses and improve farm incomes.
The penalty regime increased upto ₹10,000, and weekly wage payment cycles (instead of 15-day cycles) indicate focus on better governance. Special cards for vulnerable groups including single women, persons with disabilities, elderly, released bonded laborers, and transgender persons demonstrate targeting of marginalized communities.
Conclusion
The VB-G RAM G Bill represents a change in India’s approach to rural employment, aligning the programme with the Viksit Bharat 2047 vision. By increasing the employment guarantee to 125 days and emphasising the creation of durable and climate-resilient assets, the Bill seeks to link wage employment with longer-term rural development outcomes.
The Bill is being seen as a way to transform rural development by expanding the scale of development interventions and is expected to create additional employment opportunities for rural households. Parliamentary and policy discussions will help in carving the way ahead for revolutionizing rural employment.
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VB-G RAM G Bill 2025 FAQs
1. Which Act will VB-G RAM G Bill replace on being passed?
Ans. MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act, 2005).
2. How many workdays does VB-G RAM G guarantee?
Ans. 125 days per rural household annually.
3. What is the new Centre-State cost sharing ratio?
Ans. 60:40 for general category states and 90:10 for Northeastern and Himalayan states (Uttarakhand, Himachal Pradesh, J&K).
4. What is agricultural pause in VB-G RAM G?
Ans. A 60-day suspension of public works during peak farming seasons.
5. What infrastructure areas does VB-G RAM G focus on?
Ans. Water security, rural infrastructure, livelihood infrastructure, and disaster mitigation.
