VB–G RAM G 2025


The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, commonly known as VB–G RAM G, was introduced in the Lok Sabha on December 16, 2025. This legislation proposes a comprehensive overhaul of the rural employment framework by repealing and replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.

Overview of VB–G RAM G 2025

The mission aims to realign rural employment with the national vision of Viksit Bharat @2047, shifting from a purely demand-driven social safety net to a structured, infrastructure-led mission. It focuses on creating durable, productive assets and enhancing climate resilience in rural areas.

Key Provisions
    • Enhanced Work Guarantee: The statutory entitlement is increased from 100 days to 125 days of wage employment per rural household per financial year.
    • Revised Funding Pattern: Unlike MGNREGA’s fully Central-funded wage system, the new bill introduces a cost-sharing model between the Centre and States:
      • 60:40 split for most States and UTs with legislatures.
      • 90:10 for Northeastern and Himalayan States (e.g., Uttarakhand, Himachal Pradesh, J&K).
      • 100% Central funding for UTs without legislatures.
    •  Agricultural Season Pause: For the first time, a statutory pause of up to 60 days annually is allowed during peak sowing and harvesting seasons to ensure farm labour availability.
    • Normative Allocation: The open-ended, demand-driven “Labour Budget” is replaced by a “Normative Allocation” system, where the Centre determines state-wise funding based on objective parameters.
    • Priority Work Verticals: All works are channelled into four thematic domains:
      • Water security (e.g., irrigation, ponds).
      • Core rural infrastructure (e.g., roads, connectivity).
      • Livelihood-related infrastructure (e.g., storage, markets).
      • Climate and extreme weather mitigation.
    • Digital Governance: Integration into the Viksit Bharat National Rural Infrastructure Stack and the PM Gati Shakti platform to ensure spatially optimized planning and AI-based fraud detection.
    • Payment & Monitoring: Daily wages are to be disbursed weekly or fortnightly. Mandatory social audits must be conducted twice-yearly at the gram panchayat level.
Explanation of Exam Oriented Key Points
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Comparison between MGNREGA vs. VB–G RAM G

The following table compares the key structural and operational differences between the two frameworks:

 

Feature

MGNREGA (2005)

VB–G RAM G (2025)

Guaranteed Work

Statutory guarantee of 100 days per household annually.

Statutory guarantee increased to 125 days per household annually.

Funding Model

Demand-driven: The Centre bore 100% of unskilled wage costs.

Centrally Sponsored Scheme (CSS): Funding split 60:40 (Centre:State) for most states.

Budgetary Nature

Open-ended: Funding expanded based on the demand for work.

Normative Allocation: State-wise budget caps determined annually by the Centre.

Work Availability

Generally available year-round upon demand.

Mandatory 60-day pause during peak agricultural seasons (sowing/harvesting).

Wage Payments

Required within 15 days of work completion.

Aims for weekly wage payments, or at most within a fortnight.

Asset Creation

Broad list of permissible works; often viewed as a social safety net.

Focused on four priority verticals: Water security, core infrastructure, livelihoods, and climate resilience.

Governance

Decentralized planning at the Gram Panchayat level.

Integrated planning via the Viksit Bharat National Rural Infrastructure Stack and AI-enabled monitoring.

PRACTICE QUESTIONS

With reference to the funding architecture of the VB–G RAM G Bill, 2025, consider the following statements:

I. Unlike MGNREGA, which was a Central Sector Scheme, VB–G RAM G is a Centrally Sponsored Scheme

II. The standard fund-sharing ratio for the wage bill and material costs is 60:40 between the Centre and the States

III. For North-Eastern and Himalayan States, the central government bears 100% of the financial burden

How many of the statements given above is/are correct?

a) Only one
b) Only two
c) All three
d) None

Answer: a

Explanation: Statement I is factually Incorrect regarding MGNREGA being a Central Sector Scheme. MGNREGA was a Centrally Sponsored Scheme (CSS) where the Centre funded the entire wage bill and 75% of material costs. The VB-G RAM G Bill shifts it to a form where states bear more costs, but it remains a CSS structure with a defined state share, not a Central Sector Scheme. Statement II is Correct: Under the VB-G RAM G Bill, the standard fund-sharing ratio for most states is 60:40 between the Centre and States. Statement III is Incorrect: For North-Eastern and Himalayan states, the central government bears a 90:10 ratio (Centre:State). Therefore, the central government does not bear 100% of the burden.