In one of the most significant policy shifts in recent years, President Droupadi Murmu has given her assent to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, officially transforming it into law. The new legislation, now known as the VB-G RAM G Act, 2025, replaces the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, which has been one of India’s most prominent rural livelihood programmes. The bill was introduced in the Lok Sabha on December 16, swiftly passed by both houses of Parliament later that week and signed into law on December 20.
Why this matters: What the new law guarantees
Under the new VB-G RAM G Act, rural households whose adult members are willing to undertake unskilled manual work are entitled to a statutory guarantee of at least 125 days of wage employment in each financial year. This builds on MGNREGA’s existing framework, which legally guaranteed 100 days of work per year, expanding the horizon for rural job opportunities. The government says the aim is not only to ensure more work but to link employment with the creation of durable, productive rural assets such as water conservation, infrastructure and livelihood assets, strengthening long-term economic security.
A shift in approach: From accountability to development focus
The VB-G RAM G Act reflects a shift in the way rural employment is structured. While MGNREGA was a rights-based, demand-driven legal guarantee, the new law embeds rural work within a broader development framework. It emphasises convergence of government schemes, saturation-based service delivery and alignment with the national vision of Viksit Bharat 2047, an integrated approach aimed at transforming rural economies and infrastructure. According to the Union Rural Development Ministry, this marks a transition from a standalone welfare scheme to a tool for inclusive growth, resilience and empowerment.
Key Features: Modernisation and governance
Several features distinguish the VB-G RAM G Act from its predecessor. A 60:40 cost-sharing model between the Centre and states, with higher Central support for north-eastern and Himalayan states, replaces the earlier predominantly Central funding pattern. There is greater emphasis on digital tools such as biometric attendance, geo-tagging and real-time monitoring dashboards to improve transparency and accountability. Local planning through Gram Panchayats and Gram Sabhas continues, but within a framework designed for better convergence across schemes and departments.
Supporters and Critics: A heated debate
The bill’s passage has sparked mixed reactions. The government and its supporters argue the VB-G RAM G Act modernises rural employment policy, strengthens livelihood security and lays the foundation for a prosperous rural Bharat. They contend that the increased guarantee of employment days and enhanced implementation tools will improve both living standards and rural infrastructure.
However, critics, including opposition parties and worker groups, have raised objections. Many worry that replacing MGNREGA undermines the enforceable legal right to work that the 2005 Act provided, turning a guaranteed entitlement into a more discretionary, budget-controlled scheme. Some argue that the shift in funding responsibility to states and the change in approach may weaken rural workers’ leverage and introduce uncertainty into what was once a robust social safety net. Protests and debates in Parliament reflected these concerns.
What happens next
With presidential assent secured, the VB-G RAM G Act will come into force on dates notified by the central government. State governments are required to announce schemes consistent with the Act within six months of its commencement. As implementation begins, the country will watch closely to see how this redesigned rural employment programme unfolds on the ground and how it impacts the lives of millions of rural households across India.