VB-G RAM G Bill 2025: Rights vs. Reform in Rural Employment

19-Dec-2025

Constitution of India, 1950 (COI)

Introduction

Parliament passed the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, amid fierce opposition protests and parliamentary disruption.

The legislation replaces the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, marking the most significant overhaul of India's rural employment architecture since its inception.

What is the VB-G RAM G Bill?

About:

The Ministry of Rural Development introduced the Viksit Bharat- Guarantee For Rozgar And Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025 in the Lok Sabha.
The proposed law marks a fundamental shift from a rights-based, demand-driven rural employment scheme to a budget-capped, supply-driven framework aligned with the vision of Viksit Bharat @2047.

Key Provisions:

Statutory Wage Employment Guarantee: Provides a legal guarantee of 125 days of wage employment per rural household per financial year to adult members willing to undertake unskilled manual work.
Conditional and Non-Universal Coverage: Unlike MGNREGA’s universal coverage, employment under the Bill will be available only in rural areas notified by the Union Government, making the guarantee conditional rather than nationwide.
Bottom-Up Planning through VGPPs: Mandates preparation of Viksit Gram Panchayat Plans (VGPPs) using spatial technology, aggregated at Block, District, and State levels, and integrated with PM Gati Shakti for coordinated infrastructure planning.
Centrally Sponsored Scheme (CSS) Structure: Significantly increases the financial burden on States by revising the cost-sharing pattern to 60:40 for most States (from the earlier 10% share under MGNREGA), while retaining 90:10 only for North-Eastern and Himalayan States/UTs.
- State-wise allocations will be determined annually by the Union Government based on objective parameters, curtailing flexibility to expand spending in response to distress or rising demand.
Flexibility during Agricultural Seasons: The Bill empowers States to pause the programme for up to 60 days in a financial year during peak sowing and harvesting seasons, ensuring the availability of farm labour for agricultural activities.
Unemployment Allowance Provision: Mandates payment of unemployment allowance by State Governments if employment is not provided within 15 days of demand.

How Does VB-G RAM G Differ from MGNREGA?

Parameter	MGNREGA	VB-G RAM G
Funding Architecture	100% Central funding for unskilled wage costs. Fully demand-driven and open-ended, funding followed work demanded by workers.	60:40 Centre-State cost-sharing (90:10 for NE & Himalayan States; 100% Central for UTs without legislatures). Estimated annual outlay ₹1.51 lakh crore with Centre’s share ~₹95,700 crore.
Allocation Mechanism	States submitted annual labour budgets by Jan 31; funding was need-based and legally guaranteed.	Labour budgets removed. Annual allocations made by Centre based on objective parameters, creating capped expenditure and a supply-driven model.
Work Availability	Guaranteed work year-round whenever demanded by households.	Mandatory 60-day suspension during peak agricultural season, reducing effective work availability and income opportunities.
Administrative Ceiling	Administrative expenses capped at 6% of total outlay.	Ceiling increased to 9%, allowing more spending on staffing, training, and technical capacity.
Governance Structure	Central and State Gramin Rozgar Guarantee Councils for implementation and monitoring.	Councils retained. Additional National & State Steering Committees created for oversight. Increased Central enforcement powers including complaint investigation and suspension of funds.

What is the Government's Rationale?

Addressing Structural Weaknesses:

Implementation Gaps: Monitoring revealed persistent problems including phantom works not found on ground, expenditure-progress mismatches, unauthorized machine use in labour-intensive projects, and frequent bypassing of digital attendance systems.
Limited Full Employment: Only a small proportion of households completed 100 days of employment in the post-pandemic period, suggesting delivery system limitations.
Infrastructure Quality: Need for durable assets aligned with national development priorities rather than disconnected local projects.
Fiscal Predictability: Open-ended demand-driven funding created budgetary uncertainties; normative allocation ensures predictable planning.

Expected Benefits:

Higher Income Security: 125-day guarantee provides 25% more earning potential than MGNREGA's de facto 100-day ceiling.
Better Infrastructure: Alignment with PM Gati Shakti ensures rural works contribute to coordinated national infrastructure development.
Farm Labour Availability: 60-day pause prevents competition with agriculture during peak seasons, addressing farmer complaints.
Improved Accountability: Enhanced digital monitoring, increased administrative spending, real-time dashboards, and mandatory biometric attendance reduce leakages and corruption.
Reduced Regional Disparities: Panchayat grading system directs higher allocations to underperforming areas.

Conclusion

The VB-G RAM G Bill 2025 represents one of the most consequential and contested policy transformations in India's post-independence social welfare history. The clash is not merely technical but philosophical—between competing visions of how a democratic state should balance guaranteed rights with fiscal sustainability, between centralized development planning and community-driven priorities, between technological efficiency and inclusive accessibility.