The Narendra Modi-led government has announced that the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will be replaced by a new program, the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) VB—G RAM G Bill, 2025.
The new legislation aims to provide a statutory guarantee of 125 days of wage employment each financial year to every rural household with adult members willing to undertake unskilled manual work. The program emphasizes empowerment, economic growth, convergence, and resilience in rural India, aligning with the national vision of Viksit Bharat 2047.
Under VB—G RAM G, public works will focus on:
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Water security through water-related projects
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Core rural infrastructure development
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Livelihood-related infrastructure
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Special initiatives to mitigate the impact of extreme weather events
The scheme will involve higher spending by state governments, operating as a Centrally Sponsored Scheme. The fund-sharing formula will be 90:10 for North Eastern and Himalayan states and select Union Territories (Uttarakhand, Himachal Pradesh, Jammu & Kashmir), and 60:40 for all other states and Union Territories with legislatures.
For the first time, the bill restricts VB—G RAM G projects during peak agricultural seasons to ensure sufficient labor availability for farming. It also introduces a daily unemployment allowance if applicants are not provided employment within 15 days of applying.
A Central Gramin Rozgar Guarantee Council will oversee the program, comprising government representatives, Panchayati Raj institutions, worker organizations, and other community representatives. States will establish State Gramin Rozgar Guarantee Councils for monitoring and review. National and state-level steering committees will guide allocations, inter-ministerial coordination, and effective implementation.
Panchayats at the village, intermediate, and district levels will act as primary authorities for planning, implementation, and monitoring. District Programme Coordinators will support local execution.
The bill also provides an overriding effect, ensuring its provisions take precedence over any other inconsistent laws. However, states may implement their own schemes if they meet or exceed the guarantees and conditions specified under VB—G RAM G.
This transition from MGNREGA to VB—G RAM G marks a significant step in strengthening rural employment opportunities while building infrastructure and resilience across India’s villages.
