Syllabus: GS – II & III: Governance, Rural Development, Poverty 

Why in the News?

From 1 July 2026, the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G) has replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. The new law introduces major changes in rural employment, funding, digital governance, and asset creation, making it one of the biggest rural policy reforms in two decades.

What is VB-G RAM G?

• The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 is the new rural employment programme of the Government of India.
• Unlike MGNREGA, which primarily focused on providing a legal right to employment, VB-G RAM G focuses on creating durable rural assets, improving rural infrastructure, and generating sustainable livelihoods while continuing wage employment.

Why was MGNREGA Replaced?

The government argues that rural India now requires a shift from temporary employment generation to long-term rural development.

The new framework seeks to:

• Create productive rural assets instead of only providing wage employment.
• Improve water conservation, infrastructure, and climate resilience.
• Promote technology-driven transparency in implementation.
• Integrate rural employment with the vision of Viksit Bharat 2047.

MGNREGA vs VB-G RAM G

Feature	MGNREGA (2005)	VB-G RAM G (2025)
Nature	Rights-based law guaranteeing employment	Development-oriented employment mission
Employment Guarantee	100 days per rural household	125 days per rural household
Objective	Employment generation	Employment + creation of durable assets
Funding Pattern	Centre paid 100% wages	60:40 Centre-State (90:10 for Northeast & Himalayan States)
Work Allocation	Demand-driven	Normative allocation decided by Centre
Technology	Limited digital monitoring	Artificial Intelligence, Geospatial Mapping, Aadhaar-Based Payment, Real-time Dashboard
Focus Areas	Manual public works	Infrastructure, water security, livelihoods, climate resilience

Major Features of VB-G RAM G

1. Increased Employment Guarantee

• Annual employment increased from 100 days to 125 days.
• However, public works will remain suspended for 60 days during peak sowing and harvesting seasons to avoid labour shortages in agriculture.

2. Focus on Durable Rural Assets

• Instead of merely providing employment, the scheme focuses on creating long-term public assets.
• Priority sectors include:
  • Water conservation, Rural roads and infrastructure, Livelihood assets, Flood protection structures, Climate-resilient infrastructure & Flood shelters and embankments

3. New Funding Pattern

• One of the biggest changes is the sharing of financial responsibility.
  • General States: 60% Centre : 40% State
  • Northeastern & Himalayan States: 90% Centre : 10% State
  • Union Territories without Legislature: 100% Central funding

Unlike MGNREGA, States must bear any expenditure exceeding the Centre’s normative allocation.

4. Normative Allocation

• Earlier, States prepared Labour Budgets, based on which funds were released.
• Now, the Central Government decides annual allocations using the Sixteenth Finance Commission’s formula.
• Additional funds depend upon: Timely wage payments, Social audit performance, Completion of works & Other performance indicators.

5. Digital Governance

• The scheme introduces a strong digital monitoring system.
• It includes:
  • Artificial Intelligence-based fraud detection
  • Aadhaar-Based Payment System
  • Direct Benefit Transfer
  • Geospatial Mapping
  • Real-time monitoring dashboard
  • National Rural Infrastructure Stack

These measures aim to improve transparency and reduce leakages.

Transition from MGNREGA

Existing MGNREGA Job Cards will continue temporarily.

• Workers must complete e-KYC verification.
• They will later receive Gramin Rozgar Guarantee Cards under the new Act.
• Wage payments will continue through Direct Benefit Transfer into bank or post office accounts.

Importance for Assam and Northeast

The reform has special significance for Assam.

Positive Aspects

• 90:10 funding ratio reduces the financial burden on the State.
• Higher allocation is expected due to the Finance Commission formula.
• Greater investment in: Flood control, Embankments, Water conservation & Climate-resilient infrastructure
• Can strengthen rural connectivity and disaster preparedness.

Concerns

• Assam depends heavily on casual rural labour during the lean agricultural season.
• Floods often disturb agricultural calendars.
• The 60-day work pause during sowing and harvesting may reduce livelihood options.
• Digital authentication may create challenges in areas with:
  • Poor internet connectivity.
  • Banking limitations.
  • Aadhaar authentication failures.

Key Challenges

• Rights-based employment has shifted towards a government-managed welfare framework.
• States may face financial pressure if demand exceeds allocated funds.
• Workers could face exclusion due to digital barriers.
• Wage rates are yet to be revised and continue to remain below statutory minimum wages in several States.
• Effective implementation will require stronger social audits and grievance redressal.

Key Takeaways

• VB-G RAM G replaces MGNREGA from 1 July 2026.
• Employment guarantee increases from 100 to 125 days.
• Focus shifts from employment guarantee to asset creation and livelihood development.
• Introduces Artificial Intelligence, Direct Benefit Transfer, Geospatial Mapping, and Aadhaar-Based Payment.
• Funding changes to 60:40, while Northeastern States receive 90:10 support.
• States must bear expenditure beyond the Centre’s normative allocation.
• Assam may benefit from higher allocations but could face challenges related to seasonal employment and digital access.

Mains Practice Question

“The transition from MGNREGA to VB-G RAM G marks a shift from a rights-based employment guarantee to an asset-oriented rural development model.” Discuss its potential benefits and challenges for rural India, with special reference to Assam. (250 Words)

One-Line Wrap

VB-G RAM G represents a major shift in India’s rural development strategy by combining employment generation with infrastructure creation, digital governance, and long-term livelihood security while raising important questions about federalism, worker rights, and implementation.