President Droupadi Murmu on Sunday gave her assent to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-GRAM G) Bill, formally replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, enacted during the UPA era.
The legislation marks a significant overhaul of India’s flagship rural employment programme. One of its most notable changes is the removal of Mahatma Gandhi’s name from the scheme, a move that has drawn sharp criticism from the Opposition. At the same time, the new law expands the statutory guarantee of wage employment for unskilled workers to 125 days in a financial year, up from 100 days under MGNREGA.
Higher Employment Guarantee
Under the VB-GRAM G framework, the number of guaranteed wage employment days has been increased to 125 days annually. This represents a key shift from MGNREGA, which capped the statutory guarantee at 100 days per financial year.
New Funding Pattern
The Bill introduces a revised funding structure. As per Section 22, expenditure under the scheme will now be shared between the Centre and states in a 60:40 ratio. For North Eastern states, Himalayan states, and Union Territories such as Uttarakhand, Himachal Pradesh and Jammu and Kashmir, the funding pattern will be 90:10.
This marks a departure from the MGNREGA model, under which the wage component was fully funded by the Centre.
Pause During Peak Agricultural Seasons
The new law provides for a 60-day pause in the scheme during peak agricultural seasons of sowing and harvesting. This provision is aimed at ensuring the availability of farm labour during critical periods of agricultural activity.
Change in Administrative Control
While MGNREGA was administered by the Ministry of Rural Development, the VB-GRAM G scheme will be overseen by a newly constituted Central Gramin Rozgar Guarantee Council, signalling a shift in institutional management.
Stricter Penalties for Violations
The legislation also tightens enforcement provisions. Penalties for violations of the scheme’s provisions have been increased sharply, with the maximum fine raised from Rs 1,000 to Rs 10,000.
Planning Linked to Viksit Gram Framework
All works under VB-GRAM G will originate from Viksit Gram Panchayat Plans. These plans will be consolidated at the block, district and state levels, and further aggregated into the Viksit Bharat National Rural Infrastructure Stack, aligning rural employment works with a broader national planning framework.