Daijiworld Media Network - New Delhi
New Delhi, Dec 15: The NDA government has introduced the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) VB-G Ram G Bill, 2025, which seeks to overhaul India’s rural employment framework by replacing the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The proposed legislation raises the annual guarantee of wage employment for rural households from the existing 100 days to 125 days, while also introducing significant structural and funding changes that are likely to increase the financial responsibility of state governments.
Under the proposed law, every rural household whose adult members volunteer for unskilled manual work will be entitled to up to 125 days of employment in a financial year. While the existing MGNREGA provides for “not less than 100 days” of work, this has effectively functioned as a ceiling due to software and administrative limitations, with additional days allowed only under specific conditions such as drought, natural calamities or special provisions for Scheduled Tribe households in forest areas. The new Bill formalises a higher guarantee across rural India.
A major departure from the current framework lies in the funding pattern. Unlike MGNREGS, where the Centre bears the entire wage cost for unskilled labour, the VB-G Ram G scheme proposes shared funding between the Centre and states. The Bill provides for a 90:10 cost-sharing ratio for Northeastern and Himalayan states and certain Union Territories, while other states and Union Territories with legislatures will follow a 60:40 formula. For Union Territories without legislatures, the Centre will continue to bear the full cost. This change is expected to place additional fiscal pressure on state exchequers.
The Bill also replaces the existing labour budget system with a “normative allocation” model. The Centre will determine state-wise allocations each year based on objective parameters it prescribes. Any expenditure beyond this allocation will have to be borne by the states themselves. This marks a shift away from the demand-driven and open-ended funding approach under MGNREGA, where labour budgets are prepared based on anticipated employment demand.
Another significant provision is the introduction of a pause in employment guarantee during peak agricultural seasons. States will notify in advance up to 60 days in a financial year, covering sowing and harvesting periods, during which no work under the scheme will be undertaken. While aimed at ensuring adequate availability of agricultural labour, this effectively shortens the window within which rural households can avail the guaranteed 125 days of work.
On wage payments, the proposed law seeks to improve timelines by mandating weekly disbursal of wages, or at the latest within a fortnight of the work being done. This is an improvement over the current 15-day limit under MGNREGA. The Bill retains the provision for compensation in case of delayed payments, while continuing with the same wage rates as notified under the existing law.
If enacted, the VB-G Ram G Bill will mark a fundamental shift in India’s rural employment guarantee system, expanding entitlements on one hand while introducing tighter fiscal controls and shared financial responsibility on the other.