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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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