Explained: What is VB-G RAM G Bill and how it is different from MGNREGA

The government has enacted the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G Bill, 2025, in a major overhaul of the MGNREGA. Here’s what the new law means for rural workers, farmers, and India’s development goals. 

What is the VB-G RAM G Act, 2025? 

According to government sources, the VB-G RAM G Bill is a modernised version of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), designed to align with the Viksit Bharat 2047 vision. It guarantees 125 days of wage employment per rural household annually, up from the earlier 100 days, for adults willing to do unskilled manual work. 

What makes it different from MGNREGA? 

The new Bill introduces structural reforms and a national strategy with four key priorities: 

1. Water security through water-related infrastructure. 
2. Core rural infrastructure like roads and connectivity. 
3. Livelihood infrastructure for storage and markets. 
4. Climate resilience through flood drainage and soil conservation. 

All assets created will feed into the Viksit Bharat National Rural Infrastructure Stack, supporting integrated development. 

How will this benefit the rural economy? 

The government says the Act boosts employment, income, and infrastructure in rural areas. Prioritised water works, roads, and markets will improve agricultural productivity and reduce distress migration. Digital systems for payments, planning, and monitoring will improve efficiency and transparency. 

What it means for farmers? 

Farmers will see: 

• Labour availability during peak farming seasons, as states can pause public works for up to 60 days to prevent labour shortages. 
• Lower wage inflation during critical farm periods. 
• Better water and irrigation infrastructure. 
• Improved connectivity and storage, reducing post-harvest losses. 

What workers stand to gain? 

• 25% more employment days (125 vs. 100). 
• Digital payments and full Aadhaar verification to prevent wage theft. 
• Unemployment allowance if work isn’t provided. 
• Better assets (roads, water, etc.) built by and for them. 
• Predictable job availability via local panchayat-led planning. 

Was this overhaul necessary now? 

Government sources highlighted that MGNREGA, created in 2005, no longer reflected the realities of rural India. Poverty has declined, and digital access has improved. Meanwhile, repeated issues — like misuse of funds, weak monitoring, and underperforming assets — persisted under MGNREGA. 

In FY 2024-25, ₹193.67 crore was misappropriated, and only 7.61% of households completed 100 days of work. The new law aims to replace a patchwork approach with a focused, accountable, and tech-driven system. 

Will the new funding model reduce worker rights? 

No, the government insists the 125-day employment guarantee is legally protected. While the scheme now follows normative budgeting (not open-ended demand-based), employment or unemployment allowance remains mandatory. Normative funding brings predictability without compromising rights.

What accountability measures are included? 

Key reforms include: 

• AI-based fraud detection 
• GPS and mobile-based monitoring 
• Weekly public disclosures 
• Twice-yearly social audits per gram panchayat 
• Central and State steering committees 

Will states bear more financial burden? 

The cost-sharing model is balanced, officials said: 

• 60:40 Centre-State for most states. 
• 90:10 for North-East and Himalayan states. 
• 100% Central funding for UTs without legislatures. 

States already share material and admin costs. Predictable allocations will improve planning, and states can seek extra support during disasters.