Synopsis: VB-G RAM G raises guaranteed employment to 125 days with stricter wage timelines and a 60:40 Centre–State cost split, it shifts away from MGNREGA’s 100-day, demand-driven right to work, raising questions about income security, decentralisation, and distress protection in rural India.
VB-G RAM G and MGNREGA are two government initiatives aimed at improving rural livelihoods in India, but they follow very different approaches. While MGNREGA focuses on providing wage employment to rural households, VB-G RAM G places greater emphasis on village-level development, governance, and long-term self-reliance. Comparing the two helps understand how different policy models impact income security, community development, and rural governance.
Introducing the VB‑G RAM G Bill
President Droupadi Murmu has given her assent to the VB‑G RAM G Act, 2025, a new rural employment law replacing the decades-old MGNREGA. This legislation aims to modernize India’s rural employment framework, enhance livelihood security, and provide 125 days of wage employment annually to rural households. According to the government, the move aligns with the Viksit Bharat 2047 vision, intending to transform rural employment from a welfare program into an integrated development tool.
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB‑G RAM G) Bill introduces a statutory framework to strengthen income security and empower rural households. Key features include:
- 125 Days of Employment: A guaranteed minimum of 125 days of work per year for rural households whose adult members volunteer for unskilled manual labor.
- Weekly Wage Payments: Wages must be paid within 15 days of work completion, with delay compensation mandated for late payments.
- Pause Periods for Agriculture: States can declare an aggregated 60-day pause to ensure labor availability during peak sowing and harvesting seasons.
- Focused Development Work: Employment will now align with the creation of durable public assets in four thematic areas which includes water security, core infrastructure, livelihood-related infrastructure, and climate-resilient projects.
- Cost Sharing: The scheme is centrally sponsored, with a 60:40 split between the Centre and States (90:10 for North Eastern and Himalayan states), and 100% central funding for Union Territories without legislatures.
The Act emphasizes technology-enabled governance, transparency, and convergence-driven development, linking employment to productive assets and long-term rural growth. Also Read – Silver Prices Surge: Speculation, Scarcity, or Fundamentals?
The Old Bill: MGNREGA
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 was a landmark legislation providing 100 days of guaranteed wage employment to rural households. It was universal, demand-driven, and rooted in the Directive Principles of the Constitution, ensuring rural adults could demand work when needed.
MGNREGA’s key strengths included:
- Universal Access: Open to all rural adults volunteering for manual labor.
- Demand-Driven Work: Employment was provided based on household demand rather than pre-determined allocations.
- Women and Marginalised Inclusion: Women made up over 50% of participants, and a significant portion of workers were from SC/ST communities.
- Income Security: Guaranteed wages ensured a fallback during periods of agricultural distress.
Over time, the scheme also faced challenges such as delayed payments, underfunding, and occasional misuse of funds.
New Changes in VB‑G RAM G
Guaranteed Employment and Work Availability
Under MGNREGA, every rural household was guaranteed 100 days of employment on demand, meaning work had to be provided whenever requested. VB-G RAM G increases the statutory guarantee to 125 days, but employment availability is linked to predefined financial allocations, reducing the automatic obligation to provide work when demand rises sharply.
Demand-Driven Mechanism vs Budget-Linked Model
MGNREGA functioned as a demand-driven programme, where the State was legally bound to respond to requests for work or pay unemployment allowance. VB-G RAM G weakens this mechanism by making employment dependent on normative budget ceilings, shifting responsibility from a legal right to an administrative decision.
Financial Responsibility and Federal Balance
In MGNREGA, the Centre bore almost the entire wage cost, with States contributing roughly 10%, allowing poorer States to implement the scheme effectively. Under VB-G RAM G, States must now fund 40% of the cost, raising concerns about uneven implementation due to varying fiscal capacities.
Role of Panchayats and Decentralisation
MGNREGA empowered Gram Panchayats to identify, plan, and execute works based on local needs, reinforcing grassroots democracy. VB-G RAM G introduces greater centralised planning and monitoring, which may limit Panchayat autonomy and reduce community participation.
Wage Payments and Accountability
While MGNREGA suffered from frequent wage delays and mounting arrears, VB-G RAM G mandates weekly wage payments or payment within 15 days, with compensation for delays, marking a clear operational improvement.
Seasonal Employment Flexibility
MGNREGA allowed work throughout the year based on worker demand. VB-G RAM G permits pause periods during peak agricultural seasons, which critics argue may weaken worker’s bargaining power and reduce income options when private wages are low.
Technology and Access Conditions
MGNREGA had relatively flexible access mechanisms, accommodating workers with limited digital literacy. VB-G RAM G relies heavily on Aadhaar linkage, digital attendance, and online monitoring, raising concerns of exclusion due to connectivity and authentication issues.
Social Protection and Distress Response
MGNREGA functioned primarily as a distress lifeline, heavily used by women, SCs, STs, and Adivasis during periods of rural hardship. VB-G RAM G aims to transition rural employment towards asset creation and productivity, but critics argue this reduces its effectiveness as an immediate safety net for vulnerable populations.
While the government presents these changes as modernising and strengthening rural employment, critics argue that the right-to-work guarantee is weakened, the decentralised, demand-driven essence of MGNREGA is diluted, and state autonomy is reduced.
Conclusion
VB-G RAM G marks a shift in how rural employment is planned and delivered in India. It offers more workdays (125 days) and promises faster wage payments, while also focusing on building long-lasting village assets. However, its success will depend on how well it protects rural workers during distress and how effectively States implement it. If balanced properly, the new law can support both income security and long-term rural development without weakening support for the poorest households.
