India Introduces VB-G RAM G Bill to Replace MGNREGA

NEW DELHI: The Government of India is set to introduce a new rural employment initiative in the Lok Sabha, which seeks to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) after two decades. The proposed legislation, titled the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, aims to align rural employment and development with the national vision of Viksit Bharat 2047. The bill has been included in the supplementary list of business published on Monday.

What is the VB-G RAM G Bill?

The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, represents a comprehensive reform of MGNREGA. According to government statements, this new law will establish a modern statutory framework that guarantees 125 days of wage employment per rural household, provided adult members volunteer for unskilled manual work. The Act focuses on creating employment and sustainable rural infrastructure through four priority areas: water security, core rural infrastructure, livelihood-related infrastructure, and special projects designed to mitigate extreme weather events. All assets developed under this scheme will be integrated into the Viksit Bharat National Rural Infrastructure Stack, which aims to foster a cohesive national approach to rural development.

Differences from MGNREGA

The new Act aims to address structural deficiencies of MGNREGA while improving employment opportunities, transparency, planning, and accountability. Key enhancements include:

• Increased Employment Guarantee: The guarantee rises from 100 to 125 days, providing greater income security for rural households.
• Strategic Infrastructure Focus: MGNREGA projects were previously spread across numerous categories without a cohesive national strategy, whereas the new Act mandates a focused approach.
• Localised Planning: The legislation requires the preparation of Viksit Gram Panchayat Plans by local councils, integrating them with national spatial systems like PM Gati-Shakti.

Benefits to the Rural Economy

The Act is poised to bolster the rural economy through the creation of productive assets, increased income, and enhanced resilience. Key benefits include:

• Water Security: The prioritisation of water-related projects is expected to improve agricultural and groundwater conditions.
• Core Rural Infrastructure: Improved roads and connectivity will enhance market access and stimulate rural business activities.
• Livelihood Infrastructure: Development of storage facilities and markets will support income diversification for rural families.
• Climate Resilience: Infrastructure projects aimed at water harvesting and soil conservation will protect rural livelihoods.
• Increased Employment and Consumption: An increase in guaranteed working days is anticipated to enhance household earnings and stimulate local economies.
• Reduced Distress Migration: The creation of rural job opportunities and durable assets is expected to lower migration pressures.
• Digital Formalisation: The Act promotes the use of digital attendance and payments, boosting operational efficiency.

Benefits for Farmers

Farmers stand to gain directly from improved labour availability and agricultural infrastructure. The legislation allows states to declare up to 60 days during peak sowing and harvesting when MGNREGA work may cease. This provision aims to prevent labour shortages during critical agricultural periods and reduce the diversion of labour to guaranteed wage worksites. Additionally, prioritised water and irrigation projects are expected to improve agricultural productivity.

Advantages for Labourers

Labourers will benefit from the higher guaranteed working days and improved wage structures under the new framework. The legislation promises 125 guaranteed days of work, which translates to a potential 25% increase in earnings. Digital payments and biometric verification processes will further safeguard against wage theft.

Need for Change

The existing MGNREGA framework, established in 2005, has become outdated as rural India has evolved. Poverty rates have significantly decreased, and the rural economy has diversified, necessitating a more modern approach. The VB-G RAM G Bill aims to rectify the inadequacies of MGNREGA and adapt to the current realities of rural employment and development needs.

Transitioning to Normative Funding

The shift from a demand-based funding model to a normative one aligns the new Act with the budgeting practices of most Government of India schemes. This change aims to ensure predictable funding allocations without compromising the employment guarantee.

Conclusion

The introduction of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill represents a significant step towards modernising India's rural employment framework. By enhancing the employment guarantee and focusing on strategic infrastructural development, the government aims to create a more accountable and targeted system that meets the needs of today’s rural economy.