The Hindu:- Published on 24 December 2025
Why in the News
The President of India has given assent to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G Act). The Act enhances the guaranteed rural wage employment from 100 to 125 days, addressing concerns over employment security and countering claims of dilution of MGNREGA amid political debate.
Background and Context
MGNREGA has been India’s flagship rural employment programme ensuring livelihood security through demand-driven wage employment. However, challenges such as delayed payments, procedural hurdles, episodic employment, and leakages necessitated structural reforms. The VB-G RAM G Act represents a transition from mere employment assurance to livelihood-oriented rural development aligned with the vision of Viksit Bharat.
Key Features of the VB-G RAM G Act, 2025
- Increase in guaranteed employment from 100 to 125 days per rural household.
- Simplification of unemployment allowance procedures, strengthening the enforceable right to work.
- Time-bound grievance redressal mechanisms to enhance accountability.
- Introduction of Viksit Gram Panchayat Plans for proactive, participatory planning of works.
- Focus on demand-based employment while reducing implementation delays and leakages.
Strengthening Decentralisation and Participatory Governance
Contrary to allegations of centralisation, the Act reinforces decentralisation:
- Gram Panchayats and Gram Sabhas remain the primary planning and implementation authorities.
- Village-level plans are aggregated only for coordination, not control.
- Extensive consultations with states preceded the legislation, upholding cooperative federalism.
Addressing Misconceptions on Dilution of MGNREGA
Claims that the Act weakens MGNREGA are misplaced:
- The legal right to employment remains justiciable and is strengthened.
- Accountability mechanisms and enforceability are enhanced.
- Welfare commitments are integrated with development objectives rather than curtailed.
Fiscal Architecture and Funding Pattern
- Central allocation increased from ₹2.86 lakh crore to ₹2.95 lakh crore.
- 60:40 Centre–State funding model retained (90:10 for special category regions).
- Rule-based fund allocation ensures equity across states.
- Greater flexibility for states during natural disasters, agricultural peak seasons, and local contingencies, including provision for up to 60 non-work days.
Performance Trends and Outcomes
- Budget allocation rose from ₹33,000 crore (2013-14) to ₹2.86 lakh crore (2024-25).
- Person-days generated increased from 1,660 crore to 3,210 crore.
- Women’s participation grew from 48% to 56.73%, enhancing inclusiveness.
- Over 99% of fund transfers now occur on time through Aadhaar-linked systems.
- Completed works increased from 153 lakh to 862 lakh, indicating efficiency gains.
Comparison with the UPA Era
- Wage rates remained frozen despite commitments.
- Budget allocations declined from ₹40,100 crore (2010-11) to ₹33,000 crore (2012-13).
- CAG reports flagged fake job cards, leakages, and underutilisation in needy states.
- The VB-G RAM G Act adopts a renewal approach addressing these systemic weaknesses.
Welfare–Development Continuum
The Act integrates:
- Welfare: Livelihood security and income support.
- Development: Creation of durable rural infrastructure and productive assets.
This approach corrects episodic employment patterns and strengthens rural resilience against shocks such as droughts and pandemics.
Significance for Viksit Bharat
- Promotes saturation delivery and convergence with other rural schemes.
- Enhances productivity, infrastructure, and employment security.
- Strengthens the foundation for a self-reliant and resilient rural economy.
Way Forward
- Skill-Linked Works: Align employment with skilling initiatives (PMKVY) to enhance long-term employability.
- Climate-Resilient Assets: Prioritise water conservation, afforestation, and climate adaptation works.
- Digital Deepening: Use AI-enabled dashboards for real-time monitoring and predictive demand mapping.
- Urban–Rural Convergence: Link rural employment assets with agri-value chains, MSMEs, and local markets.
- Strengthen Social Audits: Ensure independent, community-led audits with enforceable outcomes.
Conclusion
The VB-G RAM G Act, 2025 represents a transformative reform in rural employment policy. By expanding guaranteed workdays, strengthening decentralisation, improving fiscal support, and integrating welfare with development, it modernises India’s rural livelihood framework and advances the goal of Viksit Bharat.
