Modi Govt Plans to Scrap MGNREGA, Proposes New Rural Jobs Law VB-G RAM G Bill 2025

The Narendra Modi government is set to scrap MGNREGA and bring in a new rural jobs law called Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G BILL, 2025. The proposed scheme promises 125 days of paid unskilled work each year for eligible rural households, replacing the current 100-day employment guarantee under the Mahatma Gandhi National Rural Employment Guarantee Act 2005.

Under the new framework, VB-G RAM G will function as a Centrally Sponsored Scheme but with a changed funding model that gives states greater financial responsibility than MGNREGA. Earlier, the central government covered 100% of MGNREGA costs. Under the new plan, states will share expenditure in fixed ratios, depending on their category and special status.

Viksit Bharat Rozgar and Ajeevika Mission funding pattern and rural focus

The VB-G RAM G BILL, 2025 sets a 90:10 funding split between the Union government and North Eastern States, Himalayan States and Union territories such as Uttarakhand, Himachal Pradesh and Jammu and Kashmir. For all other states and Union territories with legislatures, the cost will be shared in a 60:40 ratio. This shift marks a clear break from the fully funded MGNREGA model followed earlier.

Core features of the proposed Act highlight a wider development vision alongside wage support. According to the draft, it will create a "rural development framework aligned with the national vision of Viksit Bharat @2047, by providing a statutory guarantee of one hundred and twenty-five days of wage employment in every financial year to every rural household whose adult members volunteer to undertake unskilled manual work; to promote empowerment, growth, convergence and saturation for a prosperous and resilient rural Bharat."

Viksit Bharat Rozgar and Ajeevika Mission public works and climate angle

The mission's public works are designed to feed into a larger infrastructure plan. The Bill states the programme "will focus on empowerment, growth, convergence and saturation through public works aggregating into forming Viksit Bharat National Rural Infrastructure Stack, with a thematic focus on water security through water-related works, core rural infrastructure, livelihood-related infrastructure and special works to mitigate extreme weather events." This links wage employment with water security, rural connectivity and climate risk management.

Alongside these aims, the Bill introduces new rules on when work can be carried out. For the first time, rural job works linked to VB-G RAM G will not be allowed during agricultural peak seasons. As stated in the draft, "Notwithstanding anything contained in this Act or rules made thereunder, and to facilitate adequate availability of agricultural labour during peak agricultural seasons, no work shall be commenced or executed under this Act, during such peak seasons as may be notified," signalling a clear effort to avoid labour shortages on farms.

Viksit Bharat Rozgar and Ajeevika Mission councils and scheme oversight

Management of the scheme will differ sharply from MGNREGA, which was run directly by the rural development ministry without an exclusive council. Under VB-G RAM G, a Central Gramin Rozgar Guarantee Council will oversee implementation at the national level. The Bill explains, "The Central Council shall consist of Chairperson, representatives of Central Government and State Governments, not more than fifteen non-official members representing Panchayati Raj Institutions, organisations of workers and weaker section of the society and a Member-Secretary not below the rank of Joint Secretary to the Government of India."

States will mirror this structure. Each state government must set up a State Gramin Rozgar Guarantee Council by notification to track implementation of the Act's provisions. A National Level Steering Committee will also be created to suggest how funds should be allocated among states, handle issues needing inter-ministerial coordination, work on the convergence framework and provide high-level oversight. States will have their own steering committees to align local priorities with the central design.

Viksit Bharat Rozgar and Ajeevika Mission role of Panchayats and legal reach

The draft law keeps Panchayats at the heart of execution. Panchayats at village, intermediate and district tiers will remain the key planning and monitoring bodies for the scheme. District Programme Coordinators will be appointed to supervise work on the ground. The Bill also makes its primacy clear, stating, "The provisions of this Act or the Scheme made thereunder shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any instrument having effect by virtue of such law."

Even with this overriding clause, the proposed legislation leaves some space for states. It notes, "Provided that where a State Act exists or is enacted to provide employment guarantee for unskilled manual work to rural households consistent with the provisions of this Act under which the guarantee of the households is not less than and the conditions of employment are not inferior to what is guaranteed under this Act, the State Government shall have the option of implementing its own enactment," allowing compatible state laws to operate instead of the central scheme.

Worker protections familiar from MGNREGA also appear in the new Bill. It promises compensation if employment is not arranged on time: "If an applicant for employment under the Scheme is not provided such employment within fifteen days of receipt of his application seeking employment or from the date on which the employment has been sought in the case of an advance application, whichever is later, he shall be entitled to a daily unemployment allowance in accordance with the provision of this section." The change comes as the Supreme Court has recently upheld a High Court order directing the resumption of MGNREGA in Bengal, placing extra focus on how VB-G RAM G will now reshape rural employment guarantees nationwide.