The Indian government has announced plans to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025.
This new legislation aims to enhance the rural employment framework by increasing the guaranteed days of wage employment from 100 to 125 days per financial year for rural households whose adult members volunteer for unskilled manual work. The bill is designed to align with the national vision of Viksit Bharat by 2047, focusing on rural development and infrastructure improvement according to Hindustan Times.
One of the significant changes introduced by the VB-G Ram G Bill is the shift in funding responsibilities. Under MGNREGA, the central government bore the entire wage bill. However, the new bill stipulates that states will now share the financial burden, with a funding pattern of 90:10 for Northeastern and Himalayan states and 60:40 for other states the report noted.
This change is expected to increase the financial pressure on state governments, which will now be responsible for a portion of the wage payments.
The VB-G Ram G Bill also introduces a pause in employment guarantees during peak agricultural seasons, which will last for a total of 60 days in a financial year. This provision aims to ensure the availability of agricultural labor during critical periods of sowing and harvesting the publication said in its report. This pause represents a significant departure from the previous framework, which did not impose such restrictions.
Additionally, the bill establishes a Central Gramin Rozgar Guarantee Council to oversee the implementation of the scheme, a shift from the previous direct management by the rural development ministry the publication further reported.
This council will consist of representatives from both the central and state governments, as well as non-official members representing various stakeholders.
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