Archive · 23 Dec 2025
VB-G RAM G Act Replaces MGNREGA
The Indian government is introducing a new law called VB-G RAM G to replace the old MGNREGA scheme.
This new law aims to improve rural employment by guaranteeing 125 days of work for each rural household, up from 100 days.
The central government will pay 60% of the costs, and the state governments will pay 40%, with special areas like the North-East and Himalayan regions getting more support.
The new law also focuses on making sure that money is distributed fairly, with more going to areas that need it most.
States will have the flexibility to plan their own projects and ensure that the work is done transparently.
The goal is to create better jobs, improve infrastructure, and help rural areas develop sustainably.
However, Left parties are protesting, demanding the retention of the MGNREGA name and claiming the new act will adversely affect rural livelihoods and burden state governments.
The VB-G RAM G Act replaces MGNREGA, guaranteeing 125 days of work per rural household, up from 100 days.
The financing model follows a 60:40 Centre–State cost-sharing ratio, with special provisions for North-Eastern and Himalayan States.
Normative Allocation ensures equitable distribution of funds, with higher weightage to lagging regions.
The Act emphasizes transparency through strengthened Social Audit, weekly disclosures, and biometric/GIS-based verification.
States have the flexibility to draft their own schemes and work baskets, focusing on locally relevant projects.
- Who
- Central and State Governments of India, Left parties (CPM, CPI, etc.)
- What
- Implementation of the VB-G RAM G Act to replace MGNREGA
- When
- Not specified, but protests and discussions are ongoing
- Where
- India, with special provisions for North-Eastern and Himalayan States, protests in Vijayawada
- Why
- To modernize rural employment programs, ensure equitable development, and empower local governance, despite opposition from Left parties
Left Parties
Government
Retention of MGNREGA Name
Left Parties
Demand the retention of Mahatma Gandhi's name in the scheme.
Government
Propose a new name, VB-G RAM G, for the updated scheme.
Impact on Rural Livelihoods
Left Parties
Claim the new act will adversely affect rural livelihoods and burden state governments.
Government
Assert the new act strengthens rural employment guarantees and reduces misappropriation.
Financial Responsibility
Left Parties
Accuse the Centre of imposing nearly 40% additional financial responsibility on states.
Government
Maintain the 60:40 Centre-State cost-sharing ratio with special provisions for North-Eastern and Himalayan States.
- Scheme Name
- VB-G RAM G (Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin))
- Previous Scheme
- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
- Job Guarantee Days
- 125 days per rural household (increased from 100 days)
- Financing Model
- 60:40 Centre–State cost-sharing ratio, 90:10 for North-Eastern and Himalayan States
- Normative Allocation
- Equitable, evidence-based fund distribution with higher weightage to lagging regions
- Unified Mission Architecture
- Village Gram Priority Plans (VGPPs), Panchayat-led and Gram Sabha-approved
- Transparency Measures
- Strengthened Social Audit, weekly disclosures, biometric/GIS-based verification
- State Flexibility
- States can draft their own schemes, VGPPs, and work baskets
- Misappropriation Issues
- Rs 193 crore misappropriated in one year across multiple states
- Rural Poverty Reduction
- Rural poverty fell from 25.7% in 2011–12 to 4.86% today
- MGNREGA Demand Decline
- Demand fell 32% in November 2025, participation dropped nearly 64% between June and October 2025
Sources
MP News: G Ram G Scheme To Cast Burden Of ₹2,500 crore On State
Contractor 'bite' in RAM G pie, activist flags reduced benefits for local rural families
From siloed schemes to a unified rural mission: VB-G RAM G Act for Viksit Bharat 2047
G RAM G Bill Diminishes Job Guarantee: Centralisation Tramples Federalism
Mahatma Gandhi’s name removal from MGNREGA an insult to the Father of the Nation: Congress
MGNREGA gave Indians dignity. New job guarantee scheme keeps its core – but makes some mistakes
"Flights Of Fancy": BJP Laughs Off Sonia Gandhi's G RAM G Criticism
VB-G-RAM-G Vs MGNREGA – Hard Facts
