In a historic move on December 19, 2025, the Indian Parliament passed the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, commonly known as the VB-G RAM G Bill, marking the end of a 20-year-old employment guarantee framework. This bill seeks to replace the landmark Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a modernized statutory framework aligned with India’s vision of Viksit Bharat 2047.
The Lok Sabha passed the bill on December 18, 2025, and the Rajya Sabha followed suit the next day, amidst significant opposition from multiple political parties including Congress, DMK, and TMC. However, the bill successfully cleared both houses despite the protests.
Key Features of the VB-G RAM G Bill:
The VB-G RAM G Bill introduces several transformative changes to rural employment and development:
- Enhanced Employment Guarantee: The bill increases the employment guarantee from 100 days to 125 days per financial year for every rural household whose adult members volunteer to undertake unskilled manual work.
- New Funding Pattern: The most significant change is in the funding structure. Under the new bill, the Center will provide 60% of all costs while states will bear 40% (for North-Eastern and Himalayan states, the ratio is 90:10). This is a substantial departure from MGNREGA, where the Center covered 100% of wage costs and 75% of material costs.
- Focused Implementation: The bill proposes grading of panchayats and will allocate more work to lesser-developed and underperforming panchayats, ensuring targeted development.
- Weekly Wage Disbursement: Unlike MGNREGA’s 15-day payment cycles, the VB-G RAM G Bill ensures wage payments on a weekly basis or within a fortnight of work completion.
- Special Provisions for Vulnerable Groups: Special identification cards will be issued to vulnerable groups including single women, persons with disabilities, elderly individuals, released bonded laborers, and transgender persons.
- Increased Penalties: The penalty regime has been strengthened, with penalties increasing from Rs. 1,000 to Rs. 10,000 for violations.
Funding and Budget Allocation:
For the current financial year, the government has allocated Rs. 86,000 crore for MGNREGA. However, the Rural Development Ministry estimates the annual requirement for the VB-G RAM G Bill at Rs. 1,51,282 crore, with the estimated central share being Rs. 95,692.31 crore.
Rationale Behind the Change:
Union Agriculture Minister Shivraj Singh Chouhan moved the bill, emphasizing that after extensive consultation, it was found necessary to modernize the employment guarantee framework. He stated, “We decided to bring a new scheme in place of MGNREGA. We have made a provision for more employment and to use the large amounts to create fully developed villages. Our aim is Viksit Bharat.”
The government argues that the VB-G RAM G Bill focuses not just on employment generation but on comprehensive village development. It links wage employment with creation of durable and climate-resilient assets, water security, and long-term rural development outcomes.
Opposition and Concerns:
Opposition parties have raised significant concerns about the new funding pattern, which they argue will place an additional annual fiscal burden of approximately Rs. 30,000 crore on states. They also point out that the conditional coverage (only in notified rural areas) makes the guarantee less universal compared to MGNREGA.
Implementation Timeline:
State governments will have six months from the bill’s commencement to notify a scheme consistent with the VB-G RAM G Bill. The states will also establish Gramin Rozgar Guarantee Councils and Steering Committees at both central and state levels.
Conclusion:
The passage of the VB-G RAM G Bill marks a significant shift in India’s approach to rural employment and development. While it promises enhanced employment guarantee and broader development goals, the new funding pattern and conditional coverage have sparked debate about the balance between central responsibility and state fiscal capacity. As implementation begins, stakeholders will closely monitor how effectively the new framework achieves its ambitious goals of comprehensive rural development under the Viksit Bharat 2047 vision.
