The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) VB – G RAM G: Transforming Rural Employment Under Viksit Bharat 2047

The Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB—G RAM G) Bill, 2025 was introduced in Lok Sabha on December 16, 2025.  It seeks to replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) with a framework that aligns rural development with India's vision of Viksit Bharat 2047.

About MGNREGA:

• The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), also known as Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) is Indian legislation enacted on August 25, 2005.
• The MGNREGA provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage.
• The Ministry of Rural Development (MRD), Govt of India is monitoring the entire implementation of this scheme in association with state governments.
• This act was introduced with an aim of improving the purchasing power of the rural people, primarily semi or un-skilled work to people living below poverty line in rural India.
• It attempts to bridge the gap between the rich and poor in the country.
• Roughly one-third of the stipulated work force must be women.
• Adult members of rural households submit their name, age and address with photo to the Gram Panchayat.
• The Gram Panchayat registers households after making enquiry and issues a job card.
• The job card contains the details of adult member enrolled and his /her photo.
• Registered person can submit an application for work in writing (for at least fourteen days of continuous work) either to Panchayat or to Programme Officer.
• The Panchayat/Programme officer will accept the valid application and issue dated receipt of application, letter providing work will be sent to the applicant and also displayed at Panchayat officer.

Key Features of VB G-RAM G Act:

• Increase in number of guaranteed days of employment:  MGNREGA guarantees at least 100 days of employment in a financial year to every rural household whose adult members volunteer for unskilled manual work.  The Bill increases the guarantee to 125 days.  Under MGNREGA, if a person seeking work is not provided employment within 15 days, the state government must pay them an unemployment allowance.  The Bill retains this provision.

• Fund sharing:  Under MGNREGA, the central government provides the entire cost of wages for unskilled manual work, up to three-fourths of the material cost, and a share of administrative costs.  State governments provide one-fourth of the material cost, administrative costs, unemployment allowance, and compensation in case of delay in wage payments.  The Bill amends this to provide that the scheme will be implemented as a centrally sponsored scheme.  State governments will notify a scheme consistent with the Bill, within six months from its commencement.  The fund-sharing pattern between the central government and state governments will be 60:40 for all states other than the North-eastern and the Himalayan states (90:10).  A state and the central government will share the cost of wages, material costs, and administrative costs in the above ratios.  The state government will continue to pay unemployment allowance and compensation. 

• State governments to bear expenditure in excess of normative allocation:  The Bill provides that the central government will determine state-wise normative allocation for each financial year.  The parameters for these allocations will be prescribed by the central government under Rules.  The state government will bear any expenditure incurred in excess of this allocation.

• Pause on works during agricultural season:  The Bill requires state governments to announce in advance a period of up to 60 days for every financial year during which works under the scheme will not be undertaken.  This period will cover peak agricultural seasons, including sowing and harvesting.

• Planning framework:  Under MGNREGA, gram panchayats are responsible for identifying projects in their area under the scheme.  The Bill retains this and requires them to prepare a plan for works.  These works will focus on four thematic domains: (i) water security, (ii) rural infrastructure, (iii) livelihood-related infrastructure, and (iv) mitigation of extreme weather events.  These plans will be integrated with the PM Gati Shakti National Master Plan and also aggregated at the national level. 

• Implementation and monitoring:  MGNREGA establishes Councils at the central and state levels to undertake implementation and monitoring.  The Bill retains these provisions and also provides that their composition will be specified under Rules.  It constitutes the National Level Steering Committee which will provide high-level oversight, and recommend normative allocations.  It also constitutes a Steering Committee for each state.  Key functions of the State Committee include: (i) overseeing convergence with other programmes, (ii) aggregation of district plans into state plans, and (iii) coordinating with the National Committee.

• Use of technology:  The Bill provides for using: (i) biometric authentication for transactions, (ii) geospatial technology for planning and monitoring, (iii) mobile application-based dashboards for real-time tracking, and (iv) weekly public disclosure systems.

Key Concerns

• 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.
• 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.
• 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.
• 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.
• 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.