The Union government intends to roll out a revamped rural jobs guarantee scheme across the country from April next year, and states will be required to prepare their implementation plans within six months of the commencement of the proposed law.
The government introduced the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB G RAM G) Bill, 2025, in the Lok Sabha on Tuesday, proposing to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, amid protests by the Opposition parties. The bill was tabled by Shivraj Singh Chouhan, minister for rural development and agriculture & farmers’ welfare.
Mint reported on 15 December that the proposed legislation seeks to provide a statutory guarantee of 125 days of wage employment, up from the current 100 days, in every financial year to each rural household whose adult members are willing to undertake unskilled manual work.
The scheme will operate as a centrally-sponsored scheme, with the Union government bearing 90% of the financial burden for north-eastern and Himalayan states and Union territories, and 60% for other states. Respective states will need to stump up the rest.
The expenditure under the scheme will depend on the number of persons reporting for work, the applicable wage rate, and the material and administrative components of the work. If the legislation is implemented across the country, the total estimated annual requirement of funds for wages, material and administrative components is ₹1.51 trillion, including the state share. Of this, the estimated central share is ₹95,692.30 crore.
“All these estimates are based on full demand from across the country for 125 days of work starting from next financial year,” Chouhan said.
Opposition leaders and labour rights activists have criticized the proposed legislation, arguing that the changes dilute the core demand-driven nature of the employment guarantee scheme and shift greater financial responsibility to states.
“The introduction of the VB G RAM G Bill in Parliament is a sad day for labour rights and the basic rights of vulnerable rural Indians. This bill not only repeals MGNREGA but replaces it with a law that has no real guarantees, undermines the federal relationship, and weakens India’s attempt to provide a limited right to work. The so-called promise of 125 days of work is a false promise,” said Nikhil Dey, a founding member of Rajasthan-based Mazdoor Kisan Shakti Sangathan who was closely involved in the campaign for enactment of the MGNREGA in 2005.
“In effect, the central government has empowered itself to convert a demand-based employment guarantee into an allocation-based programme, deciding where and how it will operate, and requiring states to share costs in a 60:40 ratio, thereby undermining the very programmes it claims to run,” Dey added.
Ashish Kumar Singh, president of Citizen Forum, a civil rights awareness group in Bihar’s Katihar, termed the enhanced work-days as mere illusion.
“In reality, by altering the funding structure, the Centre is stepping back from its responsibility and shifting the burden to states through a 60:40 cost-sharing formula. The most worrying aspect is that fund allocation will no longer be demand-driven, but based on centrally-determined normative allocations, which weakens the very guarantee of employment,” said.
“The provision to halt work during the agricultural season goes against workers’ interests, as it denies them employment when they need it the most,” he added.
In response to the Opposition's protest over renaming the rural jobs guarantee scheme that bore Mahatma Gandhi's name, Chouhan said, “If changing a name were akin to insulting the legacy of Mahatma Gandhi, then the Congress insulted the legacy of Pandit Jawaharlal Nehru when it changed the name of the Jawahar Rozgar Yojana to MGNREGA.”
Responding to the Opposition, Chouhan said the government has provided 125 days of guaranteed employment, up from 100 days under MGNREGA. He said the aim of the new scheme is to ensure all-round development of villages, which he described as a resolve of Mahatma Gandhi and Pandit Deendayal Upadhyay.
A key feature of the bill is the integration of various central and state schemes under a single, coordinated planning framework. All rural works undertaken will be integrated into the Viksit Bharat National Rural Infrastructure Stack, establishing a single national framework for rural public works. Priority will be given to water security, core rural infrastructure, livelihood-related assets, and works focused on disaster mitigation and climate resilience.
Planning under the bill will be anchored in Viksit Gram Panchayat Plans (VGPPs), following a bottom-up approach. These plans will be aggregated at block, district and state levels to ensure alignment with broader development priorities. The VGPPs will be prepared using spatial technologies and integrated with PM Gati Shakti for coordinated planning.
To address farm labour requirements, states will have the flexibility to notify up to 60 days in a financial year during which works will not be undertaken under the scheme, coinciding with peak agricultural seasons.
The bill also lays emphasis on digital governance, transparency and accountability, including biometric authentication, real-time dashboards, AI-enabled analytics and strengthened social audits. Wage rates will be notified by the Centre, while unemployment allowance will be payable by states if work is not provided within 15 days of it being demanded.
Earlier, Opposition members strongly opposed the introduction of the bill. Main opposition Congress party's Lok Sabha member Priyanka Gandhi demanded that the bill be sent to the Standing Committee, saying the government should withdraw it and bring a fresh version. Venugopal termed the Bill “an attack on the Constitution.” “The Bill will put great pressure on state finances, so it should be sent to a select committee,” said Saugata Roy of the Trinamool Congress.