The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) VB – G RAM G Bill, 2025

The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) VB – G RAM G Bill, 2025

## Background

The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB – G RAM G) Bill, 2025 was introduced in the Lok Sabha on December 16, 2025, and subsequently passed by both the Lok Sabha and Rajya Sabha on December 18, 2025. This significant legislation aims to replace the existing Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA), which is a flagship social security scheme guaranteeing employment in rural areas.

## Key Points

1. Replacement of MGNREGA: The VB – G RAM G Bill, 2025 is designed to supersede and replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA).

1. Increased Employment Guarantee: * **Under MGNREGA**: It guaranteed at least **100 days** of employment in a financial year to every rural household whose adult members volunteered for unskilled manual work. * **Under VB – G RAM G Bill**: This guarantee is increased to **125 days** per rural household per financial year. * The Bill retains the provision that if a person seeking work is not provided employment within **15 days**, the state government must pay them an **unemployment allowance**.

1. Fund Sharing Mechanism: * **Under MGNREGA**: The **Central Government** bore the entire cost of wages for unskilled manual work, up to three-fourths (3/4) of the material cost, and a share of administrative costs. **State Governments** were responsible for one-fourth (1/4) of the material cost, administrative costs, unemployment allowance, and compensation for delayed wage payments. * **Under VB – G RAM G Bill**: The scheme will now be implemented as a **Centrally Sponsored Scheme**. * The **fund-sharing pattern** between the **Central Government** and **State Governments** will be **60:40** (Centre:State) for all states. * For **North-eastern** and **Himalayan states**, the fund-sharing pattern will be **90:10** (Centre:State). * This sharing ratio will apply to the cost of wages, material costs, and administrative costs. * **State Governments** will continue to bear the cost of unemployment allowance and compensation. * **State Governments** are required to notify a scheme consistent with the Bill within **six months** from its commencement.

1. Normative Allocation and State Expenditure: * The **Central Government** will determine a state-wise **normative allocation** of funds for each financial year. * The parameters for these allocations will be prescribed by the **Central Government** under specific **Rules**. * Any expenditure incurred by a state government in excess of this normative allocation must be borne by the **State Government** itself.

1. Pause on Works during Agricultural Season: * The Bill mandates that **State Governments** must announce in advance a period of up to **60 days** for every financial year during which works under the scheme will not be undertaken. * This period is specifically intended to cover **peak agricultural seasons**, including sowing and harvesting, to ensure labor availability for farming activities.

1. Planning Framework: * Similar to **MGNREGA**, **Gram Panchayats** will remain responsible for identifying projects within their areas and preparing plans for works. * These works will focus on four key **thematic domains**: * (i) **Water security** * (ii) **Rural infrastructure** * (iii) **Livelihood-related infrastructure** * (iv) **Mitigation of extreme weather events** * These plans will be integrated with the **PM Gati Shakti National Master Plan** (a national master plan for multi-modal connectivity infrastructure) and also aggregated at the national level.

1. Implementation and Monitoring: * The Bill retains the existing provisions for **Central and State Councils** to undertake implementation and monitoring, with their composition to be specified under **Rules**. * It constitutes a **National Level Steering Committee** to provide high-level oversight and recommend normative allocations. * It also constitutes a **State Level Steering Committee** for each state. Key functions of the State Committee include: * (i) Overseeing **convergence** with other government programs. * (ii) Aggregation of district plans into state plans. * (iii) Coordinating with the National Committee.

1. Use of Technology: * The Bill emphasizes the use of technology to enhance efficiency and transparency: * (i) **Biometric authentication** for transactions. * (ii) **Geospatial technology** for planning and monitoring. * (iii) **Mobile application-based dashboards** for real-time tracking. * (iv) **Weekly public disclosure systems**.

## Exam Relevance

• GS Paper: This topic is highly relevant for GS-2 (Governance, Social Justice, Welfare Schemes, Centre-State Relations) and GS-3 (Indian Economy, Employment, Infrastructure).

• Likely Question Angles:
• Comparison and Evolution: Compare and contrast the key features, objectives, and funding mechanisms of MGNREGA and the VB – G RAM G Bill, 2025. Discuss how the new Bill aims to address the shortcomings of its predecessor.
• Impact on Rural Livelihoods: Analyze the potential impact of increasing guaranteed employment days to 125 days on rural incomes, poverty reduction, and migration patterns.
• Fiscal Federalism: Discuss the implications of the new fund-sharing pattern (60:40, 90:10) and the concept of normative allocation on Centre-State financial relations and the fiscal autonomy of states.
• Role of Technology: Evaluate how the mandated use of biometric authentication, geospatial technology, and digital dashboards can enhance transparency, accountability, and efficiency in rural employment schemes.
• Sustainable Development Goals (SDGs): How do the four thematic domains for works (water security, rural infrastructure, livelihood-related infrastructure, mitigation of extreme weather events) align with India's commitments to Sustainable Development Goals?
• Integrated Planning: Examine the significance of integrating local plans with the PM Gati Shakti National Master Plan for holistic rural development and infrastructure creation.
• Challenges in Implementation: Discuss potential challenges in the implementation of the new Bill, such as ensuring timely wage payments, managing excess expenditure by states, and effective coordination between various committees.