{"id":1284,"date":"2025-12-21T19:36:19","date_gmt":"2025-12-21T15:06:19","guid":{"rendered":"https:\/\/caalokkumar.com\/my-writing\/?p=1284"},"modified":"2025-12-21T19:36:20","modified_gmt":"2025-12-21T15:06:20","slug":"why-parliament-replaced-mgnrega-with-the-vb-g-ram-g-act-key-features-and-rural-impact","status":"publish","type":"post","link":"https:\/\/caalokkumar.com\/my-writing\/why-parliament-replaced-mgnrega-with-the-vb-g-ram-g-act-key-features-and-rural-impact\/","title":{"rendered":"Why Parliament Replaced MGNREGA with the VB-G RAM G Act? – Key Features and Rural Impact"},"content":{"rendered":"\n

From Mahatma<\/em> to Mission<\/em>: unpacking the VB\u2011G RAM G Act and its promise for rural India<\/strong><\/h3>\n\n\n\n

Background and legislative context<\/strong><\/p>\n\n\n\n

The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) has been India\u2019s flagship rural social\u2011security law. It guaranteed every rural household at least 100 days of wage\u2011employment and was demand\u2011driven: funding allocations were based on actual demand for work and the Union government bore the entire wage bill, with states contributing to material and administrative costs. Over the last two decades MGNREGA provided a lifeline during droughts, economic slow\u2011downs and the COVID\u201119 pandemic and bolstered grassroots democracy through Gram Panchayats\u2019 planning of public works. However, audits revealed leakages, under\u2011utilisation of the 100\u2011day entitlement and delayed wage payments. In December 2025 the Government introduced the Viksit Bharat\u2014Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025<\/strong> (popularly called VB\u2011G RAM G<\/strong>). The Bill passed both houses of Parliament on 18 December 2025<\/strong> and received presidential assent on 21 December 2025<\/strong>, formally replacing MGNREGA.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Key features of the VB\u2011G RAM G Act<\/strong><\/p>\n\n\n\n

The Act\u2019s stated goal is to align rural employment with the vision of Viksit Bharat @ 2047<\/em>, emphasising empowerment, growth, convergence of public programmes and saturation of rural infrastructure<\/a>. Its salient features include:<\/p>\n\n\n\n

    \n
  1. Expanded employment guarantee \u2013 125\u00a0days<\/strong>
    Section\u00a05(1) of the Act provides a statutory guarantee of\u00a0not less than\u00a0125\u00a0days<\/strong>\u00a0of wage employment per rural household per year    <\/a>. This is higher than the 100\u2011day guarantee under MGNREGA<\/a>.<\/li>\n\n\n\n
  2. Normative funding and cost\u2011sharing<\/strong>
    The programme will be implemented as a\u00a0Centrally\u2011sponsored scheme<\/strong>. Funding is shared\u00a060:40 between the Centre and states<\/strong>\u00a0(90:10 for North\u2011Eastern and Himalayan states; 100\u00a0% central funding for Union territories without legislatures)    <\/a><\/a>. Unlike MGNREGA, where the Centre bore the entire wage bill, states must now contribute to wages, materials and administrative costs. The Act introduces a\u00a0state\u2011wise \u201cnormative allocation\u201d<\/strong>\u00a0\u2013 the Union government determines annual allocations based on objective parameters and states bear any expenditure above this allocation<\/a><\/a>.<\/li>\n\n\n\n
  3. Pause during peak agricultural seasons<\/strong>
    To prevent shortages of farm labour, states may\u00a0notify a 60\u2011day aggregated pause<\/strong>\u00a0each year during peak sowing and harvesting seasons. During this period no works under the scheme can be undertaken    <\/a><\/a>. Workers still remain entitled to the full 125\u00a0days in the remaining period<\/a>.<\/li>\n\n\n\n
  4. Timely and enhanced wage provisions<\/strong>
    Wages must be paid weekly or at most within\u00a015\u00a0days<\/strong>; delay compensation is payable    <\/a>. Several reports suggest the daily wage rate may rise; the initial draft proposed an increase from \u20b9205 to \u20b9240<\/a>. The Act retains provisions for unemployment allowance if work is not provided within 15\u00a0days of application<\/a>.<\/li>\n\n\n\n
  5. Thematic focus and integrated planning<\/strong>
    Public works must fall into four priority domains\u2014(a) water security, (b) core rural infrastructure, (c) livelihood\u2011related infrastructure and (d) mitigation of extreme weather events<\/strong>    <\/a>. Gram\u00a0Panchayats prepare\u00a0Viksit Gram\u00a0Panchayat Plans<\/strong>\u00a0that are aggregated up to block, district and state levels and integrated into the\u00a0Viksit\u00a0Bharat National Rural Infrastructure Stack<\/strong><\/a>. Plans align with the PM\u00a0Gati\u00a0Shakti National Master Plan, promoting convergence and avoiding fragmentation<\/a>.<\/li>\n\n\n\n
  6. Digital and technology\u2011enabled oversight<\/strong>
    The Act codifies use of biometric authentication, geospatial mapping, real\u2011time dashboards and artificial intelligence for planning, monitoring and social audits    <\/a>. It establishes National and State level Steering Committees to oversee implementation and normative allocations<\/a>.<\/li>\n\n\n\n
  7. Gramin Rozgar Guarantee Card and penalties<\/a><\/strong>
    Each adult member willing to undertake unskilled manual work receives a\u00a0Gramin\u00a0Rozgar\u00a0Guarantee Card<\/strong>, including special cards for single women, persons with disability, senior citizens and other vulnerable groups    <\/a>. The card is valid for three years and must be renewed. The penalty for contravention has been increased from \u20b91\u00a0000 to\u00a0\u20b910\u00a0000<\/strong><\/a>.<\/li>\n<\/ol>\n\n\n\n
    \"\"<\/figure>\n\n\n\n

    How VB\u2011G\u00a0RAM\u00a0G differs from MGNREGA<\/a><\/strong><\/p>\n\n\n\n

    Aspect<\/strong><\/td>MGNREGA (2005)<\/a><\/strong><\/td>VB\u2011G\u00a0RAM\u00a0G Act (2025)<\/a><\/strong><\/td><\/tr><\/thead>
    Employment guarantee<\/strong><\/td>100 days<\/em> of wage employment per rural household per year<\/a>.<\/td>125 days<\/em> statutory guarantee<\/a>; state must pay unemployment allowance if work not provided.<\/td><\/tr>
    Funding pattern<\/strong><\/td>Union government pays entire wage bill and up to three\u2011fourths of material costs; states pay one\u2011fourth of material cost and unemployment allowance<\/a>.<\/td>Centrally sponsored with 60:40<\/strong> Centre\u2011state cost\u2011sharing (90:10 for special states)<\/a>; normative allocations fix annual budgets and any excess must be borne by states<\/a>.<\/td><\/tr>
    Demand vs normative allocation<\/strong><\/td>Demand\u2011driven; labour budget based on anticipated work demand.<\/td>Top\u2011down normative allocation<\/strong> where Centre determines state\u2011wise funding based on prescribed parameters<\/a>.<\/td><\/tr>
    Pause during agricultural seasons<\/strong><\/td>No mandatory pause; works could be undertaken year\u2011round.<\/td>States may notify a 60\u2011day aggregated pause<\/strong> each year during peak sowing\/harvesting<\/a>.<\/td><\/tr>
    Scope of works<\/strong><\/td>Broad menu decided by Gram Panchayats; often unskilled manual labour.<\/td>Works limited to four domains\u2014water security, core infrastructure, livelihood infrastructure and climate resilience<\/a>; integrated with national plans<\/a>.<\/td><\/tr>
    Technology & oversight<\/strong><\/td>Use of digital payments and job cards; social audits mandated but often weakly enforced.<\/td>Biometric authentication, geospatial mapping, AI\u2011based dashboards and weekly public disclosure mandated<\/a>; National and State Steering Committees oversee implementation<\/a>.<\/td><\/tr>
    Penalty & card validity<\/strong><\/td>\u20b91 000 penalty for contraventions; job card valid for five years.<\/td>Penalty increased to \u20b910 000<\/strong> and job card (Gramin Rozgar Guarantee Card) valid for three years with special categories<\/a>.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Potential benefits and opportunities for rural livelihoods<\/strong><\/p>\n\n\n\n

      \n
    1. More days of work and income security<\/strong>\u00a0\u2013 A 25\u00a0day increase means rural households can earn additional wages, potentially raising annual income by roughly 25\u00a0%. Weekly wage payments and compensation for delays reduce cash\u2011flow crises<\/a>.<\/li>\n\n\n\n
    2. Durable and climate\u2011resilient assets<\/strong>\u00a0\u2013 Focusing on water security, core infrastructure and climate\u2011resilience ensures that labour invested under the programme creates enduring assets (ponds, rainwater harvesting structures, rural roads, markets and shelters). Such assets can boost agricultural productivity, reduce climate\u2011related risks and support diversified livelihoods.<\/li>\n\n\n\n
    3. Integrated planning and convergence<\/strong>\u00a0\u2013 Aligning Gram\u00a0Panchayat plans with national infrastructure strategies can leverage resources from other schemes (e.g., PM\u00a0Gati\u00a0Shakti, Jal\u00a0Jeevan\u00a0Mission, PM\u00a0Awas\u00a0Yojana). This may reduce duplication, improve asset quality and help achieve saturation of basic services<\/a>.<\/li>\n\n\n\n
    4. Inclusivity and special provisions<\/strong>\u00a0\u2013 Special Gramin\u00a0Rozgar\u00a0Guarantee Cards for single women, disabled persons and vulnerable groups enable targeted support<\/a>. The retention of unemployment allowance ensures households receive compensation when work is not provided<\/a>.<\/li>\n\n\n\n
    5. Skill development and technology<\/strong>\u00a0\u2013 By integrating digital tools and geospatial mapping, the Act may encourage skill development in record\u2011keeping, site supervision and digital literacy. Over time, aligning works with livelihood infrastructure could open avenues for skill\u2011based employment and self\u2011employment beyond unskilled labour.<\/li>\n\n\n\n
    6. Predictable budgeting<\/strong>\u00a0\u2013 Normative allocations provide states with predictable funding streams, aiding budgetary planning and enabling long\u2011term projects<\/a>. This may improve the efficiency of payment systems and reduce delays.<\/li>\n<\/ol>\n\n\n\n

      Concerns and points of debate<\/strong><\/p>\n\n\n\n

      While the VB\u2011G\u00a0RAM\u00a0G Act <\/a>presents an ambitious framework, several issues have triggered debate:<\/p>\n\n\n\n