Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025

Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 



What Is VB–G Ram G Bill 2025?


 


guaranteeing 125 days of wage employment per financial year to every rural household whose adult members volunteer for unskilled manual work. 



This marks a 25 per cent increase over the 100-day entitlement under MGNREGA. Beyond employment,


 the Act prioritises 

  • durable asset creation 
  •  support long-term rural growth and resilience, 
  • linking job generation with development outcomes.

How will the new scheme benefit the rural economy?





The Act strengthens the rural economy through productive asset creation, higher incomes, and better resilience:

  • Water Security: 
  • Water-related works are prioritised. Mission Amrit Sarovar has already created/rejuvenated 68,000+ water bodies, demonstrating clear agricultural and groundwater impact.

  • Core Rural Infrastructure: 

  • Roads, connectivity and foundational infrastructure boost market access and rural business activity.

  • Livelihood Infrastructure:
  1. Storage, 
  2. markets, 
  3. production assets support income diversification.

  • Climate Resilience: 
  • Infrastructure for 
  1. water harvesting, 
  2. flood drainage, 
  3. soil conservation protects rural livelihoods.


  • Higher Employment & Consumption: 

  • 125 guaranteed days increase household earnings, stimulating the village economy.

  • Reduced Distress Migration:  


  • With more rural opportunities and durable assets, migration pressures fall.

  • Digital Formalisation: 


  1. Digital attendance, 
  2. digital payments and 
  3. data-driven planning increase efficiency.



 The Union government is set to introduce the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 in Parliament, proposing to repeal the Mahatma Gandhi National Rural Employment Guarantee Act. 


The new legislation aims to realign rural employment policy with the long-term national vision of Viksit Bharat 2047 by expanding

  •  job guarantees, 
  • strengthening infrastructure creation, 
  • and tightening governance mechanisms.





Change in funding pattern



MGNREGA was fully funded by the Centre. VB-G RAM G will be a centrally sponsored scheme, requiring higher financial participation from states.

Under the Bill, the Centre–state fund-sharing ratio will be 90:10 for North Eastern states, Himalayan states and Union territories.

The ratio will be 60:40 for all other states and Union territories with legislatures.

Every state government will have to prepare a scheme for giving effect to the guarantee proposed under this bill within a period of six months from the date of the commencement of the Act.



Four Priority Verticals for Rural Development




four clearly defined verticals 


Under VB–G Ram G, all works will be organised under four clearly defined verticals. These include 

  • water security through water-related works, 

  • core rural infrastructure such as roads and connectivity, 

  • livelihood-related infrastructure like storage and market facilities, 

  • and special works to mitigate extreme weather events. 


Viksit Bharat National Rural Infrastructure Stack 


Assets created will be consolidated into a Viksit Bharat National Rural Infrastructure Stack to ensure coordinated planning, monitoring, and national-level integration.




Unemployment allowance

Like MGNREGA, the Bill provides for an unemployment allowance. If employment is not provided within 15 days of an application, the applicant will be entitled to a daily unemployment allowance, as prescribed.


New governance structure


A Central Gramin Rozgar Guarantee Council 

will be constituted by the Union government to manage the scheme.

It will include a 

  • chairperson, 
  • representatives of the Centre and states, 
  • up to 15 non-official members from Panchayati Raj Institutions, 
  • workers’ organisations and 
  • weaker sections, 
  • and a Member-Secretary not below the rank of Joint Secretary.


State Gramin Rozgar Guarantee Councils 

At the state level, State Gramin Rozgar Guarantee Councils will be set up for monitoring and review.

Under MGNREGA, the scheme was administered directly by the rural development ministry without a dedicated council.




For Labour


  • Higher Income: 
  • 125 guaranteed days = 25% more potential earnings.
  • Predictable Work: 
  • Hyperlocal Viksit Gram Panchayat Plans ensure planned, advance-mapped work availability.

  • Digital Payments & Protection: 
  • Electronic wages (already 99.94% in 2024-25) continue with full biometric and Aadhaar-based verification, eliminating wage theft.

  • Unemployment Allowance: 
  • If work is not given, states must pay unemployment allowance.
  • Asset Creation Benefits Workers Too: Workers build and benefit from improved roads, water, and livelihood assets.



Why shift from demand-based to normative funding?




  • Normative funding 
  • aligns MGNREGA with the budgeting model used for most Government of India schemes, without reducing the employment guarantee.
  • A demand-based model 
  • leads to unpredictable allocations and mismatched budgeting. 

  • Normative funding uses objective parameters, ensuring predictable, rational planning while still guaranteeing that every eligible worker receives employment or unemployment allowance.

Why is there a need to change MGNREGA now?





  • MGNREGA was built for 2005, but rural India has transformed.

  • Poverty fell -
  •  sharply from 25.7% (2011–12) to 4.86% (2023–24), supported by rising consumption, incomes and financial access recorded in MPCE and NABARD RECSS surveys.

  • diverse rural livelihoods - 
  • With stronger social protection, better connectivity, deeper digital access and more diverse rural livelihoods, the old framework no longer matched today’s rural economy.
  • open-ended model had become outdated. - 
  • Given this structural change, MGNREGA’s open-ended model had become outdated.

  • The Viksit Bharat – 
  • Guarantee for Rozgar and Ajeevika Mission (Gramin): VB – G RAM G (विकसित भारत – जी राम जी) Bill 
  1. modernises the system, 
  2. raising guaranteed days, 
  3. refocusing priorities,
  4.  and building a more accountable, targeted, and relevant employment framework for today’s rural economy.


What were the problems with MNREGA that necessitated a change? 




While many attempts were made to improve its functioning, major systemic failures persisted:

  • West bengal - 
  • Investigations in 19 districts of West Bengal found non-existent works, rule violations, and fund misuse, leading to a freeze.

  • Monitoring across 23 states - 
  • in FY 2025–26 revealed works “not found or not commensurate with expenditure,” machine use where labour was required, and large-scale bypassing of NMMS attendance.

  • In 2024–25, misappropriation -
  • totalled ₹193.67 crore across states. Only 7.61% of households completed 100 days in the post-pandemic period.
  • These entrenched issues such as
  1.  leakages, 
  2. weak verification, 
  3. and poor compliance required a new framework, not minor tweaks. 


What transparency and social protection measures are built into new Act?





  • AI-based fraud detection
  • Central + State Steering Committees for oversight
  • Focus on 4 key verticals for rural development
  • Enhanced monitoring role for Panchayats
  • GPS/mobile-based monitoring
  • real-time MIS dashboards
  • weekly public disclosures
  • stronger social audits (twice a year for every GP)



Will this burden states financially?





No. The structure is balanced and sensitive to state capacity.

  • Standard ratio: 60:40 (Centre: State)
  • North-east & Himalayan states/UT: 90:10
  • UTs without legislature: 100% funded by Central Funds
  • States already paid 25% materials & 50% admin earlier
  • Predictable normative allocation aids budgeting
  • States can request extra support during disasters
  • Better oversight reduces long-term losses from misappropriation


Why is a 60-day no-work period mandated, and what happens to workers then?




  • It ensures labour availability during sowing/harvest
  • Prevents sharp wage inflation that raises food prices
  • Workers naturally shift to agriculture, which pays higher seasonal wages
  • 60 days is aggregated, not continuous
  • Workers still get 125 guaranteed days in the remaining ~300 days
  • Thus, farmers and labourers both benefit.

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