The Lok Sabha on Thursday approved the Viksit Bharat, Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, also known as the VB G RAM G Bill, marking a major shift in India’s rural employment policy.
The new legislation repeals the nearly 20-year-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and introduces a revised structure for wage employment, funding responsibility, and programme implementation across states.
Guaranteed workdays raised to 125 a year
One of the most significant changes under the VB G RAM G Bill is the expansion of guaranteed wage employment days. The annual cap has been increased to 125 days per financial year, up from the 100 days provided under MGNREGA.
The move is aimed at offering greater income security to rural households, particularly in times of economic stress, while adapting the employment framework to evolving rural needs.
New cost-sharing formula between Centre and states
The bill also redefines how the financial burden of rural employment schemes will be shared. Under MGNREGA, the Centre largely carried the responsibility, covering 100% of wage costs and 75% of material expenses, with states contributing about 10% overall.
The VB G RAM G Bill revises this arrangement by introducing a 60:40 cost-sharing model between the Centre and most states, signalling a more balanced division of expenditure.
Special provisions for Himalayan and north-eastern states
Recognising regional challenges, the legislation provides a differentiated funding structure. North-eastern and Himalayan states will follow a 90:10 funding ratio, with the Centre bearing the larger share of costs.
For Union Territories with legislatures, the 60:40 pattern will apply, while Union Territories without legislatures will have their entire expenditure covered by the Centre.
States to roll out aligned schemes within six months
Once the VB G RAM G Act comes into force, state governments will have six months to design and notify schemes that comply with the new framework. The programme will operate as a centrally sponsored scheme, with implementation and funding shared between the Centre and states.
This transition period is intended to ensure continuity of rural employment while shifting to the new policy structure.
Opposition protests over removal of Mahatma Gandhi’s name
The bill triggered sharp reactions in the Lok Sabha, with opposition members strongly objecting to the removal of Mahatma Gandhi’s name from the employment guarantee scheme. Congress leader Priyanka Gandhi Vadra was among those who protested against the change.
Responding to the criticism, Rural Development Minister Shivraj Singh Chouhan said the government not only believes in Mahatma Gandhi but also follows his principles in policymaking.Government cites need for stronger rural employment framework
While introducing the bill, the Union minister underlined that MGNREGA has played a crucial role in providing rural wage employment for two decades. However, he argued that socio-economic changes, including the expansion of social security programmes and the saturation of major government schemes, have created the need to further strengthen and update the employment guarantee system.