Lok Sabha to Debate New Rural Employment Bill Replacing MGNREGA

Parliamentary Introduction of VB-G RAM G Bill

The Lok Sabha is poised to introduce the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G Bill) during the ongoing Winter Session of Parliament, which runs from December 1 to December 19, 2025. This significant legislative move aims to repeal and replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005, a cornerstone of India's rural employment policy for two decades. The bill was listed in the supplementary list of business on Monday, December 15, 2025, signaling its imminent debate.

Key Provisions and Enhanced Guarantees

The proposed VB-G RAM G Bill introduces several substantial changes designed to modernize and enhance rural employment. A primary feature is the increase in the statutory guarantee of wage employment from 100 days to 125 days per financial year for rural households whose adult members volunteer for unskilled manual work. This expansion seeks to provide greater income security for millions of rural families. The bill also aims to ensure more timely wage payments, with provisions for weekly disbursements or at most within 15 days, a faster turnaround compared to MGNREGA's previous 15-day limit. Should work not be provided within 15 days of application, an unemployment allowance, to be paid by the state government, is mandated.

Revised Funding Mechanism and Strategic Focus

A major departure from the MGNREGA framework is the revised funding pattern. While MGNREGA was a 100 percent centrally sponsored scheme, the VB-G RAM G Bill proposes a shared financial liability between the Centre and states. For Northeastern states, Himalayan states (including Uttarakhand, Himachal Pradesh, and Jammu and Kashmir), and certain Union Territories, the funding ratio will be 90:10 (Centre:States). For all other states and Union Territories with legislatures, the ratio will be 60:40. Union Territories without legislatures will have their costs entirely borne by the Centre. Unlike MGNREGA's demand-driven model, the Centre will now determine state-wise normative allocations, with any excess expenditure becoming the responsibility of the state governments.

The new legislation also redefines the types of works undertaken, channeling them into four priority verticals:

• Water security through water-related works
• Core rural infrastructure
• Livelihood-related infrastructure
• Special works to mitigate extreme weather events

This strategic focus aims to create durable assets and strengthen long-term livelihoods, aligning with the national vision of Viksit Bharat 2047. Furthermore, the bill allows states to notify periods, up to 60 days in a financial year, during peak agricultural seasons (sowing and harvesting) when works under the scheme will not be undertaken, to ensure adequate availability of farm labor.

Modern Governance and Rationale for Change

The VB-G RAM G Bill incorporates a modern digital governance framework, including biometric authentication, GPS and mobile-based monitoring, real-time dashboards, and the use of artificial intelligence for planning and fraud detection. This aims to address past issues such as leakages, weak verification, and poor compliance that were identified under MGNREGA. The government's rationale for this overhaul stems from the belief that MGNREGA's open-ended model had become outdated, with average employment days often falling short of the 100-day guarantee. The new bill seeks to establish a more accountable, targeted, and relevant employment framework for India's evolving rural economy.