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The Union government introduces Viksit Bharat – Guarantee For Rozgar And Ajeevika Mission (Gramin) Bill to replace MGNREGA, increasing rural workdays from 100 to 125, shifting 40% costs to states, centralizing control, and marking a shift from rights-based demand-driven employment to allocation-driven planning.
New VB-G-Ram-G Bill Expands Workdays, Shifts Costs to States
New Delhi: The Central Government plans to introduce the Viksit Bharat - Guarantee For Rozgar And Ajeevika Mission (Gramin) Bill in the winter session of Parliament. This bill will replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA).
The bill was circulated in Parliament on Monday, December 15, 2025, and will be known by the acronym VB-G-Ram-G.
Under this new law, the number of workdays for rural employment has been increased from 100 to 125. However, this change will also increase the financial burden on the states.
Sonia Gandhi for Rs 400 minimum wage, guaranteed 150 workdays under MGNREGA
Under MGNREGA, the central government bore the entire cost of wages, while states only shared the cost of materials and administrative expenses. But according to Section 22 of the new bill, all states, except the Northeastern states, Himalayan states, and three Union Territories, will have to bear 40% of the total expenditure.
MGNREGA was a demand-driven scheme, where the budget could be increased as needed. However, under the new bill, the central government will determine the annual budget for each state and how it will be spent.
Sections 4(5) and 5(1) clarify that the central government will also decide which rural areas in the states will be covered under the scheme.
The scheme may be suspended during the peak agricultural season in hilly areas to ensure the availability of laborers. MGNREGA's technological measures—such as mobile app-based attendance, Aadhaar-based payments, and geotagging of worksites—have been permanently incorporated into the law.
The government argues that replacing MGNREGA is necessary because of improvements in connectivity, housing, electricity, financial inclusion, and digital access in rural India.
The expectations of the rural population regarding higher incomes, better infrastructure, sustainable livelihoods, and climate resilience have also been taken into account.
Nikhil Dey, one of the architects of MGNREGA and a founder of MKSS, stated that this move represents a retreat from a rights-based framework. He argues that the scheme will become a centrally controlled, allocation-based program, where beneficiaries will have minimal involvement and states will face an impossible financial burden.
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In essence, the new VB-G-Ram-G bill is transforming MGNREGA from a demand-driven, rights-oriented system into a centralized, budget- and area-controlled scheme. Simultaneously, it will increase the financial responsibility of state governments and limit the role of beneficiaries.
