VB-G RAM G Act Gets Presidential Assent, Replacing MGNREGA With 125-Day Rural Employment Guarantee

The VB-G RAM G Act, 2025 has officially become law after receiving President Droupadi Murmu’s assent, the Ministry of Rural Development confirmed on Sunday. The legislation, passed by Parliament earlier this week, replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and introduces a revised framework for rural wage employment.

Formally known as the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin), the new law provides a statutory guarantee of 125 days of wage employment for eligible rural workers across the country.

Key Objectives of the VB-G RAM G Act

According to the government, the Act is designed to modernise rural employment policies while ensuring efficient use of public funds. It aligns with the long-term national goal of ‘Viksit Bharat 2047’, focusing on sustainable livelihoods and inclusive rural development.

Under the earlier MGNREGA framework, rural households were guaranteed 100 days of employment, with states permitted to extend work by up to 50 additional days. In certain regions, particularly forest areas inhabited by Scheduled Tribes, employment had been extended to 150 days.

The new law standardises the guarantee at 125 days, providing clarity and uniformity in implementation.

Focus on Transparency and Local Empowerment

The Centre has emphasised that the VB-G RAM G Act aims to improve transparency, accountability, and outcomes in rural development programmes. Greater decision-making authority will now rest with gram panchayats and gram sabhas, enabling them to identify and prioritise local development works based on community needs.

This shift is expected to reduce inefficiencies seen under the earlier system, where some states reportedly limited material expenditure to maximise central fund utilisation.

Inclusive Growth and Social Protection

Union Rural Development Minister Shivraj Singh Chouhan stated that the Act seeks to ensure the comprehensive development of villages. He highlighted that the programme is designed to provide dignified employment opportunities, with special attention to women, senior citizens, persons with disabilities, Scheduled Castes, and Scheduled Tribes.

To support the initiative, the government has allocated ₹95,000 crore in the current budget.

A New Chapter in Rural Employment Policy

With the President’s assent, the VB-G RAM G Act marks a significant policy shift in India’s rural employment landscape. The government believes the updated framework will strengthen livelihoods, empower local institutions, and contribute meaningfully to long-term rural transformation.