President Droupadi Murmu gives assent to VB-G RAM G Bill replacing MGNREGA, becomes law
PTC News Desk: President Droupadi Murmu has given assent to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, the Rural Development Ministry said on Sunday.
With the enactment of the new law, the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has been replaced by a fresh statutory framework aligned with the government’s Viksit Bharat 2047 vision. A key change under the new legislation is the increase in the guaranteed employment limit from 100 days to 125 days per financial year for rural households. The government has presented this as an expansion of benefits, arguing that the earlier 100-day provision functioned more as a cap than a minimum assurance.
The law also marks a major shift in funding structure. Unlike MGNREGA, under which the Centre fully bore wage costs, the new VB-G RAM G framework introduces shared funding between the Centre and states. The proposed formula is a 60:40 Centre–State split, replacing the earlier Centre-dominated ratios of 90:10 for northeastern and Himalayan states and 75:25 for other states. According to the government, this change is intended to strengthen cooperative federalism and increase state-level accountability.
For the first time, the legislation permits a pause in employment for up to 60 days during peak sowing and harvesting seasons. The government says this provision aims to ensure sufficient farm labour availability and respond to farmers’ concerns about labour shortages during crucial agricultural phases.
The range of permissible works has also been streamlined. Under the VB-G RAM G Act, employment will be restricted to four specific areas: water security, core rural infrastructure, livelihood-related assets, and climate resilience. The government has said this focused approach will enhance the quality and longevity of assets created.
While the Modi government has defended the new law as being in line with the Viksit Bharat 2047 roadmap, it has drawn sharp criticism from the Opposition. Congress leaders Rahul Gandhi and Priyanka Gandhi have objected to the removal of Mahatma Gandhi’s name from the legislation, arguing that the Bill weakens MGNREGA’s rights-based foundation, centralises authority, and undermines workers’ entitlements.
- With inputs from agencies
