The Transition from MGNREGA to VB-G RAM G Act: Implications for Rural Employment

The Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB-G RAM G), 2025, has replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Critics argue this marks a shift from a 'demand-driven' right to a 'command-driven' centrally sponsored model. The new Act changes the funding ratio from 90:10 to 60:40 (Centre:State) for some states and removes the Union government's obligation to pay compensation for wage delays. While it claims to provide 125 days of employment, concerns remain regarding funding adequacy and the loss of local autonomy for panchayat institutions.

Key Points

  • VB-G RAM G Act, 2025 replaces the MGNREGA framework as the primary rural job guarantee scheme.
  • The funding pattern for several states has been altered from 90:10 to a 60:40 Centre-State ratio.
  • The new Act removes the central government's legal obligation to pay for wage delay compensation.
  • It transitions the scheme from a justiciable right to work to a centrally controlled 'normative allocation' model.

Exam Facts

  • VB-G RAM G Act, 2025 (replaces MGNREGA).
  • 60:40 Centre-State funding ratio under Section 22.
  • Claim of 125 days of employment per household per year.

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All current affairs of 23 December 2025