VB-G RAM G Bill, 2025 becomes law as President Droupadi Murmu gives assent

President Droupadi Murmu on Sunday gave her assent to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM G) Bill, the Rural Development Ministry said, according to PTI. The Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, with a new statutory framework designed to strengthen livelihood security and align with the national vision of Viksit Bharat 2047.

It was passed on Friday during the Winter Session of Parliament.

VB-G RAM G Bill: What are key changes?

The new law ensures 125 days of wage employment per rural household, an increase from the current 100 days, for adult members willing to perform unskilled manual labour, as per ANI. According to Section 22 of the Act, the cost-sharing between the Central Government and State Governments will be 60:40.

For the North Eastern, Himalayan states and Union Territories, comprising Uttarakhand, Himachal Pradesh and Jammu and Kashmir, the ratio will be 90:10. Section 6 of the Act permits state governments to designate, in advance, a period of up to 60 days in a financial year, coinciding with peak agricultural activities like sowing and harvesting.

Technology under the Act is intended to support implementation rather than act as a barrier. Sections 23 and 24 introduce technology-driven transparency measures such as biometric authentication, geo-tagging, and real-time dashboards, while Section 20 reinforces social audits conducted by Gram Sabhas, ensuring community oversight, transparency, and inclusion.

The Act also removes previous dis-entitlement clauses and reinstates unemployment allowance as a meaningful statutory safeguard, the report noted, adding that if employment is not provided within the stipulated timeframe, the unemployment allowance becomes payable after fifteen days.

The act transforms the nature of the scheme, brings states as partners and seeks to resolve a problem in the rural job market. According to the officials in the rural development department, the new act represents a major upgrade over MGNREGA, fixing structural weaknesses while enhancing employment, transparency, planning, and accountability.

Financial Implications

For the financial year 2025–26, the Government has allocated ₹86,000 crore for MGNREGA, the same amount as in 2024–25. As far as the new VB - G RAM G Act, 2025, is concerned, 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 on wages, material and administrative components would be ₹1,51,282 crore including the state share. Of this, the estimated central share would be ₹95,692.30 crore. However, experts feel the burden on centre's budget will decrease, whereas burden on states will increase as state has to share 40% of the wages.

"The new centrally sponsored scheme means that all powers will get concentrated in the hands of the Central government without any corresponding obligation. The new funding pattern is 60:40 will put additional financial burden on states which are already going through stress,” Rajendran Narayanan, associate professor, Azim Premji University.

Also, to prevent the leakage the government has proposed robust monitoring system. According to the government, monitoring of the MNREGA scheme across 23 states in FY 2025–26 found that several works were either missing or not proportionate to the expenditure incurred, machinery was used where manual labour was mandated, and the attendance system was widely bypassed.

Also, in 2024–25, cases of misappropriation across states amounted to ₹193.67 crore. These entrenched issues such as leakages, weak verification, and poor compliance required a new framework, which the new bill proposes.

However, civil society, such as NREGA Sangharsh Morcha has protested against the bill(now act) right from the start, when it was tabled in the Parliament. They were of the view that, it reduces the employment guarantee into a centralised, discretionary and budget-capped scheme.

According to the act, the Union Government shall determine a state-wise "normative allocation" every year, and any excess expenditure will be borne by state governments. This pre-determined allocation will effectively act as a cap on the number of days of employment that may be provided in each state, fears civil societies.

Meanwhile, Union Agriculture Minister Shivraj Singh Chouhan stated that the Bill will significantly contribute to the welfare of the poor and accused the Congress of disregarding Mahatma Gandhi's principles. Congress President Mallikarjun Kharge slammed the BJP government, warning that a time will come when the legislation will be repealed.

“A person, a minister, who shows compassion towards the poor, is now ending the MNREGA. There is some compulsion which you are not telling others... In the coming days, a time will come when you will take back this law just like the three farm laws," he mentioned.

Kharge added, "Do you want an agitation where people block roads, protest, sustain bullet injuries, and die? Only then will you take back the law? People will come out on the streets, face bullets, but never support this law. We will continue fighting... ‘Gareeb logon ko jo ye sapna dikha rahe hain, wo kabhi poora nahi hoga’."