NEW DELHI, December 21, 2025 — In a landmark move for India’s rural economy, President Droupadi Murmu has officially granted assent to the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, commonly referred to as the VB-G RAM G Act.
The new legislation marks the end of an era by repealing the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, and replacing it with a modernized framework aligned with the government’s “Viksit Bharat @2047” vision.
Key Highlights of the VB-G RAM G Act
The primary shift in the new law is the enhancement of the statutory employment guarantee and a restructuring of how rural labor is utilized for national development.
125-Day Guarantee: The Act increases the legal guarantee of wage employment from 100 days to 125 days per financial year for every rural household.
Asset Creation Focus: Moving beyond simple labor, the Act prioritizes the creation of “durable assets” across four specific verticals:
- Water Security: Conservation, irrigation, and rejuvenation of water bodies.
- Core Rural Infrastructure: Roads, Panchayat Bhawans, and Anganwadi centers.
- Livelihood Infrastructure: Facilities that directly support agriculture and small-scale rural industries.
- Climate Resilience: Works specifically designed to mitigate the effects of extreme weather events.
•The “Agricultural Pause”: A new provision allows State Governments to notify a 60-day pause on public works during peak sowing and harvesting seasons. This is intended to ensure that farmers have adequate access to private labor and to prevent artificial wage inflation during critical farming periods.
•New Funding Pattern: The Act transitions the scheme into a Centrally Sponsored Scheme. The funding ratio is set at 60:40 (Centre:State), except for North Eastern and Himalayan states, where the ratio remains 90:10.
Modernization and Accountability
The VB-G RAM G Act introduces heavy reliance on technology to curb corruption and improve efficiency:
Viksit Bharat National Rural Infrastructure Stack: A digital database to track and aggregate local projects from the Gram Panchayat level up to the national level.
Biometric & AI Integration: The law mandates biometric authentication for all transactions and uses AI-based fraud detection for monitoring work sites.
Strengthened Protections: Unemployment allowances are triggered automatically if work is not provided within 15 days, and new provisions provide additional compensation for any delays in wage payments.
Political Reception and Criticism
The passage and assent of the Bill have been met with sharp political division. Union Rural Development Minister Shivraj Singh Chouhan hailed the Act as a “step beyond MGNREGA” that empowers the poor while building self-reliant villages.
However, Opposition parties, led by the Congress, have dubbed it a “black law.” They argue that removing Mahatma Gandhi’s name is an attempt to erase his legacy and that shifting the financial burden (the 60:40 split) will bankrupt state exchequers. Critics also expressed concern that the 60-day agricultural pause might leave vulnerable workers without any income during those months.
What’s Next?
State governments are now required to frame and notify their specific schemes consistent with the new Act within the next six months. The Union Government has proposed an initial allocation of over ₹1,51,282 crore to kickstart the program for the current financial year.