New Delhi: President Droupadi Murmu has approved the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025.
With the President’s assent, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), in force for nearly two decades, has been replaced by a new legal framework, which, according to the government of India, is aligned with the government’s Viksit Bharat 2047 vision.
A major provision of the new law raises the guaranteed employment limit for rural households from 100 to 125 days per financial year. The government has described this as a benefit expansion, noting that the earlier 100-day provision functioned more as a cap than a guaranteed minimum.
The legislation also introduces a revised funding structure. Unlike MGNREGA, under which the Centre bore the full cost of wages, the VB-G RAM G Act requires cost-sharing between the Centre and states.
Under the new formula, funding will follow a 60:40 Centre-State ratio, replacing the earlier arrangements of 90:10 for northeastern and Himalayan states and 75:25 for others. The government has said the shift is intended to strengthen cooperative federalism and enhance state accountability.
For the first time, the law permits a suspension of employment for up to 60 days during peak agricultural seasons, including sowing and harvesting.
However, the move faced massive criticism from the state government and the Opposition. Congress leaders Rahul Gandhi and Priyanka Gandhi objected to the removal of Mahatma Gandhi’s name from the law and argued that the changes dilute the rights-based foundation of MGNREGA, centralise authority and weaken worker protections.
