It is better than MNREGA in many ways. The provisions of this bill, which aims to build strong and sustainable rural infrastructure, will ensure the interests of not only rural laborers but also farmers.
VB-G Ram G bill to be tabled in parliament today
New Delhi: The government is preparing to enact a law called the Developed India - Guarantee for Employment and Livelihood Mission (Rural), or VB-G Ram G. Shivraj Chouhan will introduce this bill in Parliament today.
It is better than MNREGA in many ways. The provisions of this bill, which aims to build strong and sustainable rural infrastructure, will ensure the interests of not only rural laborers but also farmers.
According to the government, this law will strengthen the rural economy and further solidify the foundation of developed India.
Assets created under the new scheme will be registered in the Developed India National Rural Infrastructure Stack. This will help in formulating national development strategies in an integrated and coordinated manner.
This law, which provides a legal guarantee of 125 days of unskilled employment annually to adult members of rural households, will replace the 20-year-old MNREGA scheme. This raises the question of why changes were needed in an existing scheme.
How is it different and better, and will it truly transform rural India? Let's try to understand these and many other questions and their answers...
Why was there a need to change MNREGA?
MNREGA was designed for India in 2005, but rural India has completely transformed since then. A fast, sustainable, and inclusive employment framework is necessary for the development of rural India.
Poverty has declined significantly, from 25.7% in 2011-12 to just 4.86% in 2023-24. This decline has been made possible by increased consumption, income, and financial inclusion recorded in the MPCE and NABARD REX surveys. With stronger social security, better connectivity, deeper digital penetration, and diversified rural livelihoods, the old framework no longer matches today's rural economy.
Due to structural changes, the uncontrolled and open model of MNREGA had become irrelevant. Also read - Opposition protests in Lok Sabha over Hindi names of bills, MPs say pronunciation is difficult
Steps towards Standardized Financing
Standardized financing links MNREGA to the budgeting system adopted in most of the Indian government's schemes, and this will not lead to any reduction in employment guarantees.
This change will make the scheme more disciplined, transparent, and effective, where resources will be utilized logically. The demand-based model creates unpredictable allocations and budget discrepancies.
In contrast, standardized financing is based on objective standards, allowing for predictable and logical planning. In standardized financing, the center and states will share responsibility.
If work is not provided within the stipulated time, unemployment allowance will have to be paid. The right to guaranteed employment will remain fully legally secure and protected.
Previous attempts at reform were insufficient
Several major reforms were made in MNREGA, but the deep-seated structural problems could not be addressed. However, compared to the financial year 2013-14, MNREGA achieved several key milestones during 2025-26. Women's participation increased from 48% to 56.74%.
The number of Aadhaar-seeded active workers increased from 7.6 million to 121.1 million. Geo-tagged assets increased from zero to 64.4 million. E-payments increased from 37% to 99.99%, and individual assets increased from 17.6% to 62.96%. However, despite this progress, instances of misuse continued, and the digital presence was circumvented. Therefore, a modern and robust system was needed.
What arrangements are in place for transparency and security?
AI (Artificial Intelligence) will be used to prevent irregularities. Steering committees will be formed at the central and state levels for monitoring. Work will be monitored using GPS and mobile devices.
There will also be an AIS dashboard displaying information in real time. Work and expenditure will be publicly disclosed every week. A rigorous social audit will also be conducted twice a year in every Gram Panchayat.
Will this increase the financial burden on the states?
No, because this system is balanced and designed keeping in mind the capacity of the states. Better monitoring will reduce the losses due to corruption in the long run. 60% No, because this system is balanced and designed keeping in mind the capacity of the states. Better monitoring will reduce the losses due to corruption in the long run.
Systemic flaws persisted even after reforms
Several attempts were made to improve the functioning of MGNREGA, but systemic flaws persisted. Investigations in 19 districts of West Bengal revealed that many works existed only on paper, rules were violated, and funds were misused, leading to the suspension of funding. Monitoring in 23 states during the financial year 2025-26 revealed that many works either did not exist or were not commensurate with the expenditure; machines were used where wage-based work should have been done, and NMMS attendance was widely manipulated. In 2024-25, a total of ₹193.67 crore was found to have been misused in various states. In the post-pandemic period, only 7.61% of households completed 100 days of work.
How will the new scheme benefit the rural economy?
The creation of productive assets, higher incomes, and improved resilience will boost the rural economy. It will provide immediate employment and benefit rural India in the long run.
