Context: The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB–G RAM G Bill) was introduced in the Lok Sabha to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The Bill seeks to realign rural employment policy with India’s post-poverty-transition phase, fiscal sustainability concerns, and an infrastructure-led growth strategy under the broader vision of Viksit Bharat.
Core Objectives
The proposed law aims to move beyond a pure distress-relief framework towards productivity-oriented, asset-linked rural employment, while retaining a statutory employment guarantee. It emphasises durable asset creation, fiscal discipline, technological monitoring, and integration with national infrastructure planning.
Key Structural Changes
1. Employment Guarantee
- Annual guaranteed wage employment is increased from 100 to 125 days per rural household, enhancing income security.
- Wage payments must follow a weekly cycle, with a statutory upper limit of 15 days for settlement.
2. Funding Architecture
- The scheme shifts from 100% Central funding to a centrally sponsored scheme (CSS) model:
- 60:40 Centre–State ratio for most States
- 90:10 for North-Eastern and Himalayan States
- 100% Central funding for Union Territories
- The existing demand-driven Labour Budget is replaced by a centrally fixed normative funding system.
- State-wise allocations will be based on parameters notified by the Central Government; any excess expenditure must be borne entirely by States.
3. Project Planning and Asset Creation
- All works must originate from approved Viksit Gram Panchayat Plans, limiting ad-hoc project selection.
- Asset creation is restricted to priority domains:
- Water security
- Rural infrastructure
- Livelihood generation
- Climate and weather resilience
- Village-level assets will be digitised and integrated into a national asset stack linked with PM Gati Shakti, ensuring convergence and long-term utility.
4. Seasonal Labour Management
- States are empowered to pause the scheme for up to 60 days during peak sowing and harvesting periods to prevent labour diversion from agriculture and protect food security.
5. Beneficiary Identification
- Gramin Rozgar Guarantee Cards replace traditional job cards, with validity reduced from five to three years.
- Special-coloured cards are mandated for Persons with Disabilities (PwDs), PVTGs, and transgender beneficiaries to improve inclusion and tracking.
6. Monitoring and Compliance
- Mandatory biometric authentication, AI-based anomaly detection, GPS-based worksite tracking, and biannual social audits.
- Penalties for violations are enhanced from ₹1,000 to ₹10,000, signalling stricter accountability.
Rationale for the Reform
- Socioeconomic shift: Poverty declined from 25.7% (2011–12) to 4.86% (2023–24), reducing the need for open-ended distress employment.
- Implementation concerns: Monitoring reports flagged substandard assets and fund misappropriation under MGNREGA; only 7.61% of households completed 100 days of work post-pandemic.
- Fiscal prudence: Demand-based funding created budget volatility, necessitating predictable, parameter-based allocations.
- Agricultural balance: Labour diversion during peak seasons disrupted farm operations, justifying the seasonal pause provision.
Significance and Concerns
The Bill promises higher guaranteed employment, durable infrastructure, fiscal predictability, and greater transparency. However, higher State cost-sharing, constrained flexibility during droughts, digital exclusion risks, and reduced Gram Sabha autonomy remain key challenges.