VB-G RAM-G replaces MGNREGA with President’s assent, gazette notification

President Droupadi Murmu on Sunday gave her assent to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with a provision for 125 days of wage employment for rural workers.
With the President’s assent, the legislation has come into force as the VB-G RAM G Act, 2025, and a notification to this effect has been published in the Gazette of India. The Union Ministry of Rural Development described the Act as a decisive reform in India’s rural employment and development framework.
According to the government, the new Act aims to establish a comprehensive rural development architecture aligned with the national vision of “Viksit Bharat 2047.” Besides guaranteeing 125 days of wage employment annually, the Act allows states to notify a pause period of up to 60 days in a financial year to ensure adequate availability of agricultural labour during peak sowing and harvesting seasons.
The Ministry emphasised that the legislation seeks to transform rural employment from a standalone welfare scheme into an integrated instrument for long-term development. The Bill was passed by Parliament last week amid strong protests from opposition parties. The Congress, which continued nationwide protests on Sunday, accused the Modi government of “desecrating” the landmark MGNREGA legislation. The party alleged that two decades of progress had been overturned without consultation and by bypassing established parliamentary conventions.
Rejecting the criticism, Union Rural Development Minister Shivraj Singh Chouhan said misinformation was being spread about the new law. In a video message posted on X, Chouhan said the VB-G RAM G scheme was a step ahead of MGNREGA and announced that over Rs. 1,51,282 crore would be allocated to ensure adequate funding for rural employment. “There is a conspiracy to mislead the country. False information is being circulated, whereas the truth is that the VB-G RAM G scheme is more progressive than MGNREGA,” the minister said.
The Ministry stated that the Act strengthens income security for rural households, modernises governance and accountability, and links wage employment with the creation of durable and productive rural assets, laying the foundation for a resilient rural economy. The Act mandates payment of wages on a weekly basis or, at the latest, within 15 days of completion of work. In cases of delay beyond the stipulated period, workers will be entitled to delay compensation.
Employment under the Act is aligned with the creation of durable public assets across four priority thematic areas: water security and water-related works, core rural infrastructure, livelihood-related infrastructure, and works aimed at mitigating extreme weather events.
All projects will originate from Viksit Gram Panchayat Plans (VGPPs), prepared through participatory processes at the village level and approved by the Gram Sabha. These plans will be digitally and spatially integrated with national platforms such as PM Gati Shakti to avoid duplication and ensure efficient resource utilisation.
The cost-sharing pattern has been fixed at 60:40 between the Centre and states, 90:10 for northeastern and Himalayan states, and 100% central funding for Union Territories without legislatures. Administrative expenditure has been enhanced from six per cent to nine per cent to strengthen staffing, training and field-level support.