Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025

17.12.2025

Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025

Context

In late 2025, the Union government proposed the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RaM G). This legislative move aims to replace the two-decade-old MGNREGA framework, shifting the focus from mere distress relief to long-term productivity and rural infrastructure.

About the News

Background:

The MGNREGA (2005) served as a safety net for millions, but evolving economic conditions and the vision of "Viksit Bharat @2047" necessitated a modern overhaul. The new Bill seeks to align rural labor with climate resilience and durable asset creation.

Key Features of the Bill:

• Enhanced Employment Guarantee: Increases assured workdays from 100 to 125 days per household, boosting potential rural earnings by approximately 25%.
• Four Priority Asset Sectors: Focuses strictly on water security, core rural infrastructure, livelihood infrastructure, and climate-resilient works to prevent "fragmented" or temporary projects.
• Revised Funding Model: Shifts to a 60:40 Centre-State sharing ratio for most states (90:10 for NE/Himalayan states), aiming to increase state-level accountability.
• Digital Governance: Codifies mandatory biometric attendance, AI-based fraud detection, and GPS/geotagging for all projects.
• Agricultural Safeguards: Includes a 60-day optional pause during peak sowing and harvesting seasons to ensure farm labor availability and stabilize wages.
• Normative Funding: Allocations are determined by objective parameters rather than being purely demand-driven, intended to provide budget predictability.

Comparison: MGNREGA vs. VB-G RaM G

Need for the Reform

• Economic Shift: Rural poverty dropped significantly from 25.7% (2011-12) to ~4.9% (2023-24), signaling a transition from "survival" needs to "productivity" needs.
• Asset Quality: Previous reports indicated sub-standard works and misappropriation (approx. ₹193 crore in 2024-25), requiring tighter oversight.
• Climate Resilience: India's rural landscape faces increasing heat stress and floods, necessitating specialized climate-adaptive infrastructure.
• Fiscal Discipline: Move from volatile demand-based budgeting to a more predictable planning cycle between the Centre and States.

Challenges

• Dilution of Rights: Moving to "normative" or capped allocations might restrict employment during unexpected economic shocks.
• Fiscal Burden: Poorer states may struggle to meet the 40% funding requirement, potentially leading to a development gap.
• Digital Exclusion: Heavy reliance on biometrics and apps can disadvantage elderly, tribal, or technologically marginalized workers in remote areas.
• Centralization: Increased Central control over "notified areas" may dilute the autonomy of Gram Sabhas guaranteed under the 73rd Amendment.

Way Forward

• Hybrid Funding: Maintain a contingency window to revert to a demand-driven model during disasters or pandemics.
• Human Fallback: Ensure manual/offline alternatives are available when digital systems fail to prevent worker exclusion.
• Capacity Building: Provide additional fiscal support or technical handholding for states with lower revenue bases.
• Social Audits: Empower local communities to conduct binding audits and ensure time-bound grievance redressal.

Conclusion

The VB-G RaM G Bill represents a strategic pivot toward asset-led rural transformation. While the increase to 125 days and the focus on climate resilience are progressive, the success of the reform hinges on balancing fiscal efficiency with the fundamental right to work.