President Droupadi Murmu has given her assent to the VB-G RAM G Bill, 2025, which replaces the MGNREGA with a new rural employment law. The new legislation increases the guaranteed employment from 100 to 125 days, changes the funding pattern to a 60:40 cost-sharing ratio between the Centre and the states, and restricts the range of works that can be undertaken.
President Droupadi Murmu has formally approved the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, thereby giving it the force of law and paving the way for a significant restructuring of India’s rural employment policy framework.
With the President’s assent, the long-standing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)—which has been in operation for nearly two decades as the country’s flagship rural employment scheme—will now be phased out and replaced by this new legislation. The VB-G RAM G Act introduces a revised statutory structure that reflects the government’s broader Viksit Bharat 2047 vision, which aims to transform India into a developed nation by the centenary of its independence.
The new law is expected to reshape the approach to rural employment and livelihoods by aligning wage employment, skill development, and sustainable livelihood creation more closely with long-term national development goals.
One of the most notable changes introduced by the new legislation is the strengthening of the statutory employment guarantee available to rural households. Under the revised provisions, the guaranteed number of workdays has been increased from 100 to 125 days per financial year. The government has presented this move as a meaningful expansion of benefits, arguing that the earlier 100-day provision functioned more as a strict upper limit in practice, rather than as a baseline level of employment that could be exceeded when demand was high.
In addition to expanding the employment guarantee, the Bill proposes a major restructuring of the programme’s funding mechanism. Under MGNREGA, the wage component was entirely financed by the central government, ensuring uniformity in wage payments across states. However, the newly proposed VB-G RAM G framework departs from this model by requiring the Centre and state governments to share the financial responsibility. This shift in funding architecture marks a significant policy change, with potential implications for state finances, implementation capacity, and the overall effectiveness of the employment guarantee programme.
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The proposed funding arrangement shifts to a 60:40 cost-sharing formula between the Centre and the states, moving away from the earlier models that placed a heavier financial burden on the central government—specifically, the 90:10 ratio for northeastern and Himalayan states and the 75:25 ratio for all other states. According to the government, this revised structure is intended to strengthen the spirit of cooperative federalism by encouraging states to take on a more substantial financial role. By contributing a larger share of the funds, states are expected to feel a stronger sense of responsibility and ownership over the planning, implementation, and outcomes of the programmes, which, in turn, is expected to lead to better execution and accountability.
For the first time, the rural employment law permits work to be suspended for up to 60 days during peak sowing and harvesting seasons. The government says this is meant to ensure enough labour is available for farming and to ease farmers’ concerns about labour shortages during crucial agricultural periods.
The range of allowable work under the scheme has also been reduced. Under the VB-G RAM G Act, employment will be limited to four specific areas: water security, core rural infrastructure, livelihood-related assets, and climate resilience. According to the government, this change will help create better-quality and more durable assets.
While the Modi government says the new law is in line with its Viksit Bharat 2047 vision, the Opposition has strongly objected. Congress leaders Rahul Gandhi and Priyanka Gandhi criticised the removal of Mahatma Gandhi’s name from the law, arguing that the Bill weakens the rights-based foundation of MGNREGA, centralises decision-making, and reduces workers’ entitlements.
FAQ Question :
1. What’s VB G RAM G?
The Viksit Bharat—Guarantee for Employment and Livelihood Mission (Rural) (VB–GRAMG) Bill, 2025 was introduced in the Lok Sabha on December 16, 2025. It aims to replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA).
2. What is RAM G Bill?
