The Rural Development Ministry described it as a decisive reform in India’s rural employment and development framework. According to the government, the VB-G RAM G scheme aligns rural development with the national vision of ‘Viksit Bharat 2047’
President Droupadi Murmu. File pic
President Droupadi Murmu on Sunday gave her assent to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and providing for 125 days of wage employment for rural workers, news agency PTI reported. Following the presidential approval, the Bill is now the VB-G RAM G Act, 2025, as notified in the Gazette of India.
The Rural Development Ministry described it as a decisive reform in India’s rural employment and development framework. According to the government, the VB-G RAM G scheme aligns rural development with the national vision of ‘Viksit Bharat 2047’.
Besides guaranteeing 125 days of wage employment, the Act allows states to notify a pause period of up to 60 days in a financial year to ensure adequate availability of agricultural labour during peak sowing and harvesting seasons, PTI reported. The Ministry said the Act aims to transform rural employment from a standalone welfare measure into an integrated instrument of development.
The Bill was passed in Parliament last week amid Opposition protests. The Congress continued its nationwide protests on Sunday, accusing the Narendra Modi government of "desecrating the groundbreaking law" and claimed that two decades of progress under MGNREGA had been overturned "without consultation" and by bypassing parliamentary conventions.
Dismissing such criticism, Rural Development Minister Shivraj Singh Chouhan alleged that misinformation was being spread about the new scheme, which he described as a step forward from MGNREGA. In a video posted on X, Chouhan said that over Rs 1,51,282 crore will be allocated to the VB-G RAM G scheme to ensure adequate funding for rural employment.
"There is a conspiracy to misguide the country, and false information is being spread, while the truth is that the VB-G RAM G scheme is a step ahead of MGNREGA," he said.
'Act modernises rural employment framework, links wage work to productive assets'
The Ministry said the Act modernises the statutory framework, enhances livelihood security, strengthens income stability for rural households, and links wage employment with the creation of durable and productive rural assets, laying the foundation for a prosperous and resilient rural India.
The Act mandates payment of wages on a weekly basis, or within 15 days of work completion, PTI reported. Delay compensation is payable in case of late payment.
Wage employment under the Act is aligned with four priority domains: water security and water-related works, core rural infrastructure, livelihood-related infrastructure, and mitigation of extreme weather events.
All works are derived from Viksit Gram Panchayat Plans (VGPPs), prepared at the gram panchayat level through participatory processes and approved by the gram sabha. These plans are digitally and spatially integrated with national platforms, including ‘Pradhan Mantri Gati Shakti’.
"This integrated planning framework will enable Ministries and Departments to implement works more effectively, avoid duplication and wastage of public resources, and accelerate development through saturation-based outcomes," the Ministry said.
The cost-sharing pattern is 60:40 between Centre and states, 90:10 for North Eastern and Himalayan States, and 100 per cent Central funding for Union Territories without legislatures. The Ministry clarified that normative allocations pertain to budgeting and fund flow and do not affect legal entitlements to employment.
The administrative expenditure ceiling has been raised from 6 per cent to 9 per cent, allowing better staffing, training, technical capacity, and field-level support.
Technology under the Act is designed as an enabling mechanism, not a barrier, the Ministry added.
(With PTI inputs)
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