What’s VB–G RAM G Bill? Centre’s Plan To Replace MGNREGA Explained

Centre plans to repeal MGNREGA and roll out a new rural jobs law, sparking protests over funding shifts and the future of rights-based welfare.

Enacted in 2005 under the UPA government, MGNREGA was widely seen as a transformative step in rural welfare policy.

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The Union government has unveiled plans to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, and replace it with a new legislation — the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, also referred to as VB–G RAM G. The announcement has triggered a sharp political confrontation, reopening debates on welfare, federal finances and the future of rights-based social protection in rural India.

MGNREGA: A Landmark Welfare Law

Enacted in 2005 under the UPA government, MGNREGA was widely seen as a transformative step in rural welfare policy. It legally guaranteed at least 100 days of paid unskilled work each year to rural households, while also strengthening livelihoods, advancing social inclusion, and empowering Panchayati Raj Institutions.

Over the years, the scheme became a critical safety net during agrarian distress, droughts, and economic slowdowns.

What Is VB–G RAM G Bill?

The proposed VB–G RAM G Bill seeks to overhaul this architecture. On paper, it expands the employment guarantee to 125 days per household annually, an increase of 25 days over MGNREGA. The government argues that this reflects a stronger commitment to rural employment while aligning the programme with evolving development priorities.

The most significant departure from MGNREGA lies in funding. Under the old law, the Centre bore the full cost of unskilled wages, while states were mainly responsible for unemployment allowances and a share of material costs. The new bill alters this balance by introducing mandatory cost-sharing for wages.

Under VB–G RAM G, the Centre and states will share wage costs in a 90:10 ratio for Northeastern and Himalayan states and Union Territories with legislatures, and 60:40 for other states and UTs with legislatures. Union Territories without legislatures will continue to receive full central funding. This shift places a substantially higher fiscal burden on states, prompting concerns about their capacity to sustain wage payments, especially in poorer regions.

Politics, Protests & Gandhian Legacy

The government has framed the new bill as part of Prime Minister Narendra Modi’s broader “Viksit Bharat 2047” vision, presenting it as a move to integrate rural employment with long-term development goals. Critics, however, argue that replacing a rights-based law with a mission-mode scheme risks weakening legal entitlements.

The Congress has mounted a fierce opposition, announcing nationwide protests against what it called a “BJP-RSS conspiracy” to dismantle MGNREGA and erase Mahatma Gandhi’s legacy. In a letter to state units, Congress general secretary K. C. Venugopal called for demonstrations at district headquarters, with portraits of Mahatma Gandhi symbolising resistance. Opposition MPs have also protested inside Parliament following the bill’s introduction by Union Minister Shivraj Singh Chouhan.

As the bill moves forward, it has set the stage for a far-reaching debate on rural employment, Centre–state financial responsibility, and the ideological direction of India’s welfare state — weighing the promise of more workdays against fears of eroding Gandhian principles embedded in MGNREGA.