Author: Aditya Pareek | EQMint | General News

 

In a major overhaul of India’s rural employment framework, Parliament has passed the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin): VB-G RAM G Bill, 2025, replacing the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MNREGA). The Bill was passed in the Lok Sabha on Tuesday afternoon amid strong protests from opposition parties and cleared by the Rajya Sabha later the same night.

 

The government has described the legislation as a reform-oriented step aimed at strengthening rural livelihoods, improving wage delivery, and aligning employment guarantees with agricultural realities. However, opposition parties have criticised the move, arguing that the new law undermines the core objective of MNREGA—guaranteeing work on demand for the rural poor with strong decentralised implementation.

 

The passage of the VB-G RAM G Bill marks one of the most significant changes to India’s rural welfare architecture in recent years.

 

Background: From MNREGA to VB-G RAM G

MNREGA, enacted in 2005, legally guaranteed 100 days of wage employment to rural households willing to undertake unskilled manual work. Over the years, it became one of the world’s largest public employment programmes and a critical safety net for rural India, especially during economic downturns and crises such as the COVID-19 pandemic.

 

The new VB-G RAM G Act seeks to replace MNREGA with a restructured framework that, according to the government, reflects the vision of “Viksit Bharat” by 2047—focusing on enhanced employment, better wage security, and more structured fiscal management.

 

Key Changes Introduced Under the VB-G RAM G Act

1. Increase in Guaranteed Days of Employment

One of the most notable changes under the new law is the increase in guaranteed employment days.

 

• • MNREGA: Guaranteed 100 days of wage employment per rural household per year

• • VB-G RAM G: Guarantees 125 days of employment

The government has projected this increase as a major pro-worker reform, stating that it provides additional income security to rural households. However, critics argue that higher guaranteed days may not translate into actual employment if funding and work availability are constrained.

 

2. Revised Wage Payment Mechanism

The VB-G RAM G Act introduces a significant change in how wages are paid to workers.

 

• • Under MNREGA, wages were to be paid within 15 days of work completion.

• • Under VB-G RAM G, weekly payments are mandated.

If wages are not paid within a maximum of 15 days, workers will be entitled to compensation at the rate of 0.05% of unpaid wages per day, calculated from the 16th day onwards.

 

The government has said this provision will ensure faster wage payments and improve trust in the system. Labour activists, however, note that compensation rates are modest and depend heavily on effective enforcement.

 

3. Introduction of a 60-Day No-Work Period

A new and controversial provision under the Act is the introduction of a 60-day no-work period.

 

State governments will notify, in advance, a 60-day period during which no work will commence under the scheme. The objective is to prevent labour shortages during peak agricultural sowing and harvesting seasons.

 

Key features of this provision include:

 

• • States may issue different 60-day notifications for different regions

• • Decisions will be based on agro-climatic zones, crop cycles, and local agricultural practices

While the government argues this aligns rural employment with farm needs, opposition parties contend that it dilutes the “right to work on demand,” which was central to MNREGA.

 

4. Shift in Funding Pattern and Financial Burden

Perhaps the most structural change is the shift in funding responsibility.

 

• • Under MNREGA:
    

     

    • • The Central Government provided 100% funding for wages

• • Under VB-G RAM G:
    

     

    • • The scheme is now classified as a centrally sponsored scheme

The revised funding ratios are:

 

• • General States and Union Territories: 60% Centre, 40% State

• • Hilly States and North-Eastern States: 90% Centre, 10% State

• • Union Territories without a legislature: 100% Centre-funded

Expenditure will be divided into:

 

• • Wages

• • Material component of works

• • Administrative expenses

States will continue to bear the unemployment allowance, similar to MNREGA.

Opposition leaders have criticised this shift, arguing that financially weaker states may struggle to allocate their share, potentially limiting employment generation.

 

5. Special Provisions During Natural Calamities

The VB-G RAM G Act introduces flexibility during extraordinary situations.

 

During natural calamities or exceptional circumstances, State Governments may seek special operational relaxations, including:

 

• • Temporary expansion of permissible works

• • Enhanced wage rates

• • Other emergency measures

The Centre will evaluate such requests, a provision the government says will allow faster and more targeted responses during crises.

 

6. Centralised Allocation of Work and Funds

Another significant departure from MNREGA is the change in how work and funds are allocated.

 

• • Under MNREGA, labour budgets were prepared at the district level every December, based on anticipated demand.

• • Under VB-G RAM G, the Central Government will determine State-wise normative allocation of work and funding each financial year using objective parameters.

Any expenditure beyond this allocation will have to be borne entirely by the State Government.

 

Critics argue this move centralises decision-making and weakens demand-driven employment, a foundational principle of MNREGA.

 

7. New Implementation Structure

The implementation framework has also been restructured.

 

• • Under MNREGA: Panchayats were the principal authorities for planning and implementation.

• • Under VB-G RAM G:
    

     

    • • A National Level Steering Committee will recommend decisions on normative allocation
    • • State Level Steering Committees will provide operational guidance
    • • Panchayats will function after approvals within this new framework

Opposition parties have raised concerns that this reduces grassroots autonomy and increases bureaucratic oversight.

 

Political Debate and Opposition Response

The Bill faced strong resistance in both Houses of Parliament. Opposition members protested that the new law weakens the statutory guarantee of employment and shifts the burden onto states.

 

They argued that MNREGA was not merely a welfare scheme but a legal right, and replacing it with a centrally sponsored model could undermine accountability.

 

The government, however, defended the legislation, stating that it modernises rural employment, ensures better wage delivery, and aligns public works with long-term development goals.

 

What Lies Ahead

With the VB-G RAM G Act now passed, attention will turn to its implementation on the ground. The effectiveness of the new law will depend on timely funding, administrative coordination, and the ability of states to adapt to the revised framework.

 

As rural India continues to face challenges from climate change, economic uncertainty, and structural transformation, the success or failure of VB-G RAM G may significantly shape livelihoods, labour markets, and political discourse in the years ahead.

 

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