President Droupadi Murmu has given her assent to the VB G RAM G Bill 2025, formally clearing the way for a major change in India’s rural employment programme, the Union Rural Development Ministry said on Sunday.
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin law, which was passed by Parliament earlier this week, will replace the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act or MGNREGA. The government has said the new law is aligned with its vision of Viksit Bharat 2047.
Under the new legislation, rural households will get a statutory guarantee of 125 days of wage employment in a financial year. This is an increase from the earlier guarantee of 100 days under MGNREGA. The government has argued that the earlier limit often acted as a ceiling rather than a minimum assurance of work.
The Centre has said the new framework aims to ensure more efficient use of public funds with greater transparency and accountability. An allocation of Rs 95,000 crore has been earmarked for the programme.
Union Rural Development Minister Shivraj Singh Chouhan said the law would help in the comprehensive development of villages and provide employment to every poor person while protecting the dignity of workers. He said the scheme would offer additional support to women, the elderly, persons with disabilities, Scheduled Castes and Scheduled Tribes.
A key change under the new law is the funding structure. Unlike MGNREGA, where wages were fully funded by the Centre, the new scheme introduces shared financing between the Centre and states. The proposed ratio is 60 percent contribution by the Centre and 40 percent by states. The government has said this will strengthen cooperative federalism and give states greater responsibility in implementation.
The law also allows employment under the scheme to be paused for up to 60 days during peak sowing and harvesting seasons. The government said this provision is meant to address complaints from farmers about labour shortages during crucial agricultural periods.
The scope of work under the scheme has been streamlined. Employment will now focus on four main areas, including water security, core rural infrastructure, livelihood related assets and climate resilience. According to the government, this will help create more durable and meaningful assets in villages.
However, the new law has drawn sharp criticism from the Opposition. Congress leaders Rahul Gandhi and Priyanka Gandhi have objected to the removal of Mahatma Gandhi’s name from the legislation. They have also alleged that the law weakens the rights based nature of MGNREGA, centralises control and dilutes workers’ entitlements.
Despite the criticism, the government has maintained that the VB G RAM G Act represents an expansion and reform of rural employment guarantees and marks a new chapter in India’s rural development policy.
