Parliament clears VB-G RAM G Bill, 2025: How it is different from MGNREGA

The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) – VB-G RAM G Bill, 2025, was passed by both the Houses of Parliament on Thursday, December 18, 2025 amidst Opposition uproar. Once accorded assent by the President, the bill will replace the two-decade-long Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, with fundamental reforms required for the evolving socio-economic needs of rural employment.

Salient Features of the VB-G RAM G Bill, 2025:

As against MGNREGA, the new bill proposes the following key changes:

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Increase in guaranteed employment days:

The minimum number of days of guaranteed work will now be 125 days per year per rural household, which was earlier “not less than 100 days” under MGNREGA.

Revised Centre-State financial framework:

While MGNREGA was funded 90 per cent by the Centre, under the proposed VB-G RAM G Bill, the bifurcation of fund disbursement will be as follows:

• For northeastern states, Himalayan states/UTs with Legislature (Uttarakhand, Himachal Pradesh, and J&K), the cost sharing will be 90:10 (Centre:State), respectively
• Similarly, for all the other states and UTs with Legislature, the cost sharing will be in the ratio of 60:40 (Centre:State)
• For UTs without Legislature, the funding will be done entirely by the Centre (100 per cent).

Introduction of Normative Allocation:

• The Centre will now decide and allocate funds to the States in advance, within which the State Governments will operate. Any expenditure beyond the given allocation will have to be borne by the States.
• This was not the case earlier under MGNREGA, where States estimated how much work people would demand, following which the Centre had to fund it.
• So, a major shift is seen in the scheme from “give money based on how much work people demand” to “give only as much work as the pre-fixed budget allows”.

Mandated non-working periods for agricultural seasons:

60 days each year must be declared by the States as peak agricultural seasons during which no work falling under the VB-G RAM G Bill will be carried out so as to avoid competing with agricultural labour requirements. No such explicit legislative ‘pause’ was mentioned under MGNREGA.

Decentralised planning:

Gram Panchayats will propose works such as water-related works, supporting agriculture and groundwater recharge, which will then be consolidated into the Viksit Bharat National Rural Infrastructure Stack, which will further be integrated with the PM Gati Shakti Master Plan to strengthen decentralized planning and efficient implementation. Prior to this, under MGNREGA, the Gram Panchayat’s planning was centrally done.

Overall, the VB-G RAM G Bill seeks to bridge gaps and address issues in the previous ongoing MGNREGA, 2005 thereby aligning the scheme with the central vision of Viksit Bharat 2047.