What Changes Does the New Rural Employment Bill Bring? A Deep Dive into the VB-G RAM G Bill

Transforming Rural Employment: The VB-G RAM G Bill

New Delhi: The Lok Sabha has recently approved the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, which effectively abolishes the MGNREGA, signaling a significant shift in the government's approach to rural employment.

Originally enacted in 2005 as the National Rural Employment Guarantee Act (NREGA) and later renamed in 2009, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was designed to improve livelihood security for rural households.

This legislation guaranteed a minimum of 100 days of wage employment annually for every household willing to engage in unskilled manual labor.

The new VB-G RAM G Bill aims to create a 'rural development framework' that aligns with the national vision for Viksit Bharat 2047, offering a statutory guarantee of 125 days of wage employment.

Key Differences Between MGNREGA and VB-G RAM G:

* The MGNREGA guarantees 100 days of wage employment, while the VB-G RAM G Bill increases this to 125 days.

* MGNREGA operates on a demand-driven basis, requiring the government to allocate additional funds based on work demand. In contrast, the VB-G RAM G Bill stipulates a normative allocation to states, with any excess costs to be covered by state governments.

* Under MGNREGA, the central government covers 100% of wages, while material costs are shared at a 75:25 ratio with states. The VB-G RAM G, however, shifts more financial responsibility to states, with a cost-sharing ratio of 90:10 for northeastern and Himalayan states, and 60:40 for other states and Union territories (UTs) with legislatures. For UTs without legislatures, the central government will bear the entire cost.

* MGNREGA allows for work requests throughout the year, whereas the VB-G RAM G will restrict work requests to specific periods aligned with peak agricultural seasons.

* MGNREGA categorizes work into various sectors such as water conservation and flood control, while the VB-G RAM G focuses on four main areas: water security, core rural infrastructure, livelihood-related infrastructure, and disaster mitigation.

* Under MGNREGA, gram panchayats identify projects, with decisions made in open assemblies. The VB-G RAM G requires projects to originate from Viksit Gram Panchayat Plans, which must align with the PM Gati Shakti National Master Plan.

* MGNREGA does not classify panchayats, but the VB-G RAM G mandates that panchayats prepare plans based on their classification into categories A, B, or C, determined by development metrics.

* The VB-G RAM G introduces a comprehensive digital ecosystem, incorporating biometric authentication, GPS or mobile-based monitoring, proactive public disclosures, and AI for planning and audits, aimed at enhancing governance and citizen engagement.