VB–G RAM G Bill To Replace MGNREGA: All You Need To Know About Funding Pattern And Other Proposed Changes

The Union government is preparing to introduce a new rural employment law in the Parliament, proposing to repeal the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). 

The new legislation, titled the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Bill, 2025, aims to realign rural employment and development goals with the vision of Viksit Bharat 2047. 

The bill has been listed in the supplementary business agenda issued on Monday. According to senior government functionaries, the amended Bill was cleared by the Union Cabinet in its meeting held on Friday, Dec. 12.

The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, proposes a major overhaul of MNREGA. The new law seeks to create a modern statutory framework aligned with the Viksit Bharat 2047 vision. It guarantees 125 days of wage employment per rural household, provided adult members volunteer to undertake unskilled manual work, according to an official government statement.

The Act focuses on building durable rural infrastructure. It targets four main areas: water security through water-related projects, core rural infrastructure, livelihood-supporting infrastructure and special works designed to reduce the impact of extreme weather events in rural areas.

All assets created under the scheme will be consolidated into the Viksit Bharat National Rural Infrastructure Stack, aimed at "ensuring a unified and coordinated national approach to rural development," the statement read.

Within six months of the VB-G RAM G Act coming into effect, states are required to formulate schemes aligned with its provisions. The program will be implemented as a centrally sponsored scheme. The financial responsibilities will be shared between the Centre and state governments. 

For North-eastern and Himalayan states, the funding-sharing ratio will be 90:10, while for other states and Union Territories with legislatures, it will be 60:40. For the Union Territories without a legislature, the Centre will cover the total cost.

Rural Development Minister Shivraj Singh Chouhan stated that MGNREGA has provided guaranteed rural wage employment for 20 years. However, he emphasised the need for "further strengthening” due to socio-economic changes from widespread social security programs and saturation of major government schemes.