G-RAM-G Bill & What It Means
“Replacing MGNREGA with VB-G RAM G: Reform or Retreat on Rural Rights?”
Core Issue: The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (G-RAM-G) was passed by Parliament , overturning the long-standing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a flagship rural employment law that guaranteed at least 100 days of work to rural households annually.
Government’s Position:
Supporters — including the ruling party — describe the new bill as a modernisation of rural employment policy, saying it expands statutory employment guarantee to 125 days and aligns rural wages with broader livelihood and asset-creation goals. They claim structural changes will make delivery more efficient and rural development more robust.
G RAM G bill –facts
Full Name & Purpose
- The bill is called the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G).
- It replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which was India’s landmark rural employment law enacted in 2005.
Type of Law
- It is a statutory framework for rural wage employment and asset creation, meant to support livelihoods and rural infrastructure.
- The new law continues a rural employment guarantee but with structural and funding changes.
Days of Guaranteed Work
- Under the new law, every rural household whose adults volunteer for unskilled work is entitled to 125 days of wage employment per year.
- This increases the employment entitlement from the 100 days under MGNREGA.
Funding & Cost Sharing
Funding pattern changes from the old scheme:
- Central government and states share costs (e.g., 60:40 for most states).
- 90:10 share for northeastern & Himalayan states.
- Union Territories without legislatures will have the Centre bear the entire cost.
Previously under MGNREGA, the Centre funded 100% of unskilled wages and a large share of materials.
Budget & Allocations
- The new bill shifts from demand-driven funding to normative state-wise allocations for each year.
- If a state exceeds its allocation, the additional cost must be borne by the state government.
- MGNREGA’s open-ended funding (where more funds were released if more work was demanded) is no longer the model.
Seasonal Work Pause Provision
- For the first time, the law allows states to notify up to 60 days of “work pause” during peak agricultural seasons (sowing/harvesting).
- During these periods, employment guarantee works will not be undertaken to ensure labour availability for farming.
Focus on Priority Works
- The legislation puts sharper emphasis on creating durable rural assets like water security, core infrastructure and livelihood-linked projects.
- Works must be aligned with village development plans and national rural infrastructure priorities.
Wage Payments & Implementation
- Wages will generally be paid weekly or within a maximum of 15 days after completion of work, potentially speeding up payments to workers.
- The law retains provisions like unemployment allowance if a person is not provided work in time, though administrative roles and digital monitoring are updated.
Institutional Setup & Monitoring
- The framework introduces councils and committees at central and state levels for planning, monitoring and execution.
- It includes digital attendance systems, biometric checks, geo-tagging and social audits to enhance transparency and execution.
Editorial Critique:
- Many opinion pieces argue that renaming and restructuring the scheme under a new title weakens the original rights-based guarantee. Critics point out:
- The switch from MGNREGA to VB-G RAM G removes the explicit statutory right to work and replaces it with what may become an allocation-based scheme, reducing the legal guarantee of employment.
- The funding model now requires cost sharing with states (e.g., 60:40), unlike MGNREGA’s previous 100% central funding, potentially limiting the scheme’s effectiveness if states struggle financially.
- Opposition leaders and commentators say removing Mahatma Gandhi’s name is symbolic of an erosion of the welfare state’s historic commitments to rural workers.
VB-G RAM Comparison with MGNREGA
| Feature / Aspect |
MGNREGA (2005) |
VB-G RAM G Bill (2025) |
| Legal Basis |
Rights-based statutory guarantee (demand-driven) |
Allocation-based framework with budget caps (supply-driven). |
| Guaranteed Work Days |
100 days per rural household per year |
125 days per rural household per year |
| Funding Pattern (Wages/Materials) |
Centre funds 100 % of wage costs; materials cost shared (Centre & states) |
Centrally Sponsored Scheme with Centre-State cost sharing: typically 60:40; 90:10 for NE/Himalayan states; UTs without legislature fully Centre-funded |
| Budget Structure |
Open-ended, demand-based funding |
Normative state-wise allocation with capped budgets (excess borne by states) |
| Work Availability Across Year |
Work can be sought year-round |
Allows up to 60-day “pause” during peak sowing/harvest agricultural seasons — no work provided then |
| Asset Focus / Types of Work |
Broad rural works (water conservation, land devpt, drought proofing, irrigation, flood control) |
Four priority domains: water security, core rural infrastructure, livelihood-linked infrastructure, climate/extreme event mitigation |
| Local Planning & Panchayat Role |
Gram panchayats & gram sabhas identify and plan works based on local needs |
Viksit Gram Panchayat Plans aligned with national infrastructure stacks (e.g., PM Gati Shakti) and integrated digital governance |
| Monitoring & Technology |
Basic monitoring; social audits |
Expanded digital ecosystem including geotagging, biometric attendance, AI tools, proactive disclosures, dashboards |
| Right to Work Guarantee |
Legal enforceable right – demand must be met |
Guarantee subject to allocations and state notification of areas; work depends on budget & notified areas |
| Wage Payment Timeline |
Up to 15 days maximum after work |
Wages required to be paid weekly or within 15 days |
| Unemployment Allowance |
Provision under specific conditions |
Retained and strengthened in new Bill to ensure allowance if work not provided in time |
Editorial Takeaway:
The debate on G-RAM-G reflects a broader philosophical divide over state responsibility versus decentralised delivery and rights versus allocations in India’s rural employment policy. Proponents see necessary reform; critics see rollback of a rights-based guarantee that provided a crucial safety net for millions in rural India.
Way Forward: How Implementation Might Unfold
Shift from Rights to Structured Livelihood Framework
- The new Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 replaces MGNREGA’s statutory right to work with a more mission-oriented livelihoods framework that still aims to provide rural wage work tied to asset creation and local planning.
- Future focus: The programme will increasingly integrate rural employment with long-term rural asset creation (water security, infrastructure, climate resilience) instead of only responding to immediate job demands.
Institutional & Monitoring Reforms
The Bill strengthens governance with:
- Institutional councils at Centre and states for planning and oversight,
- Expanded digital monitoring (biometric attendance, GPS tracking), and
- Social audits & transparency mechanisms to improve delivery.
These mechanisms aim to reduce corruption and delays and ensure that works correspond to development priorities.
Funding & Fiscal Role of States
Instead of fully centralised funding under MGNREGA, VB-G RAM G introduces normative allocations and a shared Centre-State cost model (e.g., 60:40), with states bearing excess costs if allocations are exceeded.
Implication:
- States with stronger finances may implement the scheme more effectively,
- States under fiscal stress may struggle to meet demands, potentially impacting work availability.
Operational Challenges
Some critical practical points that will need attention as the law unfolds:
- The 60-day work pause during peak agricultural periods could limit year-round job access for workers who need it most.
- How well the Bill’s asset-linked work model aligns with local needs vs central priorities will shape rural uptake and satisfaction.
- Effective state-level capacity building will be essential for implementation, monitoring, and timely wage payment.
Conclusion: A New Chapter for Rural Employment Policy
The VB-G RAM G Bill 2025 represents one of the biggest overhauls in India’s rural employment policy in two decades:
- It extends the days of work from 100 to 125 and re-aligns rural jobs with long-term development goals rather than just wage support.
- It introduces modern monitoring & governance systems, aiming for better transparency.
- It shifts fiscal responsibility partly to states, making rural job support more predictable but also potentially uneven across regions.
What matters going forward:
- Implementation quality will determine whether rural households actually receive more stable employment and income.
- State capacities and political will will impact how effectively the new framework functions in practice.
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