President Gives Assent to VB-G RAM G Bill: India’s Rural Employment Law Enters a New Era

President Gives Assent to VB-G RAM G Bill: India’s Rural Employment Law Enters a New Era

New Delhi, December 21, 2025 – President Droupadi Murmu has given her assent to the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, which has now become law. This marks the culmination of legislative approval by both Houses of Parliament and represents one of the most significant reforms of India’s rural employment and livelihood policies in two decades. 

What Is the VB-G RAM G Act?

The VB-G RAM G Act replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, a landmark law that guaranteed rural employment for nearly 20 years. Under the new Act, the Government of India has sought to revamp and expand rural employment framework, aligning it with the long-term vision of Viksit Bharat @2047. 

Key Features and Changes

The new law introduces several important structural and policy changes:

1. Increased Employment Guarantee

The Act provides a statutory guarantee of 125 days of wage employment per rural household per financial year, up from 100 days under MGNREGA. 

2. Focus on Rural Infrastructure and Livelihoods

Unlike the older framework, the VB-G RAM G law emphasises durable rural infrastructure, water security works, core rural facilities, livelihood-related assets, and measures to address extreme weather events as priority areas. 

3. New Funding Pattern

Under the new framework, funding is shared between the Centre and State Governments on a normative allocation basis. While some states will receive higher central support, others will share fiscal responsibilities in a 60:40 pattern (Centre:State). 

4. Seasonal Balance in Work Offerings

The Act allows states to notify a combined period of up to 60 days during peak agricultural seasons (sowing and harvesting) when work under the scheme may be suspended. 

5. Digital Governance and Planning

The programme strengthens the role of Gram Panchayats and Gram Sabhas in preparation of local plans, and encourages integration with national digital platforms for real-time monitoring and accountability.

Why the Change?

The Government has argued that the law modernises India’s rural employment strategy by:

• Enhancing job guarantees with a higher statutory floor.

• Linking work more directly with durable assets and livelihoods rather than simple wage labour.

• Improving planning and transparency through digital governance and local leadership. 

Supporters claim the new law not only guarantees more workdays but also promotes economic resilience and asset creation in rural areas.

Debate and Controversy

The replacement of MGNREGA with VB-G RAM G has drawn sharp criticism from opposition parties and civil society groups:

• Critics contend that the new funding pattern may impose additional fiscal burdens on states and limit flexibility for rural households. 

• Some activists argue that converting an open-ended, demand-driven scheme into one with normative allocations risks weakening the enforceable right to work

Opposition leaders have also objected to the removal of Mahatma Gandhi’s name from the rural employment law, saying the change undermines the legacy of the original programme. 

What Happens Next?

With the President’s assent now complete, the VB-G RAM G Act, 2025 has been published in the Gazette of India and will come into force according to the timelines notified by the Government. State governments and implementing agencies will begin operationalising the new scheme, issuing rules and mobilising resources for the first cycle under the revised framework. 

Conclusion

The enactment of the VB-G RAM G law represents a pivotal moment in India’s rural policy landscape—transitioning from a welfare-oriented guarantee to a broader mission aimed at integrated rural development and livelihood assurance. Whether the reforms achieve the intended objectives will be closely watched as implementation scales up across India’s villages.