The Narendra Modi-led government has introduced legislation to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 with a new scheme titled the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, or VB–G RAM G. The Bill aims to establish a rural development framework aligned with the Viksit Bharat @2047 vision, providing a statutory guarantee of 125 days of wage employment in every financial year to each rural household.

Continues below advertisement

This is for household whose adult members volunteer to undertake unskilled manual work, an increase from the 100-day guarantee under MGNREGA.

States to Share Costs

The new programme will focus on public works related to water security, core rural infrastructure, livelihood-linked infrastructure, and mitigation of extreme weather events, with projects aggregating into a proposed Viksit Bharat National Rural Infrastructure Stack. Unlike MGNREGA, which was fully funded by the Centre, VB–G RAM G will be implemented as a centrally sponsored scheme, increasing the financial burden on states.

Differential Funding, Farm Safeguard

The funding pattern will be 90:10 for North Eastern and Himalayan states and Union Territories such as Uttarakhand, Himachal Pradesh and Jammu and Kashmir, and 60:40 for other states and Union Territories with legislatures. For the first time, the Bill bans scheme-related works during peak agricultural seasons to ensure the availability of farm labour.

It also retains the provision for a daily unemployment allowance if employment is not provided within 15 days of an application. The scheme will be overseen by a newly constituted Central Gramin Rozgar Guarantee Council, comprising representatives of the Centre, states, Panchayati Raj institutions, worker organisations, and weaker sections, along with a Member-Secretary of at least Joint Secretary rank.

Continues below advertisement

Multi-Tier Oversight Framework

State Gramin Rozgar Guarantee Councils and National and State-level Steering Committees will also be formed for monitoring, allocation decisions, and inter-ministerial coordination. Panchayats at the district, intermediate and village levels will remain the principal authorities for planning, implementation and monitoring, with District Programme Coordinators appointed for execution.

The proposed law will have an overriding effect over existing statutes but allows states with equivalent or superior employment guarantee laws to implement their own enactments.

Congress Criticises Removal Of Gandhi’s Name

The proposed repeal of MGNREGA’s name has drawn sharp criticism from Congress. Senior leader Priyanka Gandhi Vadra called the move unnecessary, saying it wastes public funds on stationery and paperwork and questioned the government’s priorities, noting that pressing issues are being ignored while Parliament remains inactive.

Brief History of MGNREGA

MGNREGA was enacted in 2005 under the UPA government led by Prime Minister Manmohan Singh, creating the world’s largest social security and public works programme by guaranteeing 100 days of wage employment to rural households. In 2009, the Act was renamed after Mahatma Gandhi to reflect his principles of dignity of labour, rural self-reliance, and grassroots empowerment.