Archive · 25 Dec 2025
Centre Pushes for VB-G RAM G Act Amid Protests
The Indian government has introduced a new law called the VB-G RAM G Act to replace the old rural jobs scheme, MGNREGA.
This new law increases the number of workdays from 100 to 125.
However, the central government will now pay for only 60% of the costs, while states will have to pay 40%, which is a big increase from the previous 10%.
Many people and groups are protesting because they think this will make it harder for states to afford the scheme.
The central government is asking states to hold meetings in villages to explain the new law, but some people are worried that the new law gives too much power to the central government to decide how the money is spent.
The Centre has asked states to hold gram sabha meetings to create awareness about the VB-G RAM G Act amid protests.
The VB-G RAM G Act replaces MGNREGA, increasing workdays from 100 to 125 but reducing the Centre's funding share from 90% to 60%.
Critics argue the new law mandates a 40% funds contribution by states and gives the Centre discretionary powers over allocations and implementation.
The Centre has set a deadline of 26th December 2025 for states to conduct these meetings and upload proceedings via the Panchayat Nirnay App.
Protesters fear the new law will dismantle the rural job scheme and increase the financial burden on states.
- Who
- Indian Centre and States
- What
- VB-G RAM G Act replacing MGNREGA with increased state funding and workdays
- When
- Effective from the 2025-26 budget, Gram Sabha meetings by 26th December 2025
- Where
- India
- Why
- To enhance rural employment and livelihood opportunities, but criticized for increased state financial burden and central discretion
- Current Funding Ratio (MGNREGS)
- 90:10 (Centre:State)
- New Funding Ratio (VB-G RAM G)
- 60:40 (Centre:State)
- Additional Burden on States (2025-26)
- ₹30,000-40,000 crore
- State Borrowings (2024-25)
- ₹10.73 trillion (7% higher than 2023-24)
- State Borrowings (2025-26, as of December)
- ₹6.84 trillion (81% of planned borrowing)
- Combined Fiscal Deficit (2025-26)
- ₹11.4 trillion (3.2% of GDP)
- 10-Year Government Bond Yield (22 December)
- 6.68% (9-month high)
- Workdays under VB-G RAM G
- 125 days
- Workdays under MGNREGA
- 100 days
- Deadline for Gram Sabha Meetings
- 26th December 2025