President Approves New Rural Jobs Bill, Replacing MGNREGA with Enhanced Benefits
President assents to new rural jobs Bill, replacing MGNREGA with 125 guaranteed work days.
Photo by Markus Spiske
In a significant move, President Droupadi Murmu has given assent to the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill. This new legislation replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a flagship scheme of the previous government. The key change is an increase in guaranteed work days from 100 to 125, alongside a substantial budget allocation of ₹1,51,282 crore.
The government has outlined four focus areas for works under the new scheme: water security, core rural infrastructure, livelihood-related infrastructure, and extreme weather mitigation. While the Centre remains the principal funding partner, the cost-sharing model for wage bills under the erstwhile MGNREGA was 90:10 (Centre:States), and for administrative costs, States paid 25%. The new Act aims to shift from 'created works' to 'outcomes', though the Congress party has criticized it as a 'dismantling' of MGNREGA.
Key Facts
President Droupadi Murmu assented to VB-G RAM G Bill
VB-G RAM G Bill replaces MGNREGA
Guaranteed work days increased from 100 to 125
Budget allocation: ₹1,51,282 crore
Four focus areas: water security, core rural infrastructure, livelihood related infrastructure, extreme weather mitigation
Centre is principal funding partner (60:40 model for Centrally sponsored schemes)
MGNREGA wage bill sharing was 90:10 (Centre:States)
UPSC Exam Angles
Constitutional provisions related to social welfare and the 'right to work' (DPSP).
Centre-State financial relations and cost-sharing mechanisms for centrally sponsored schemes.
Evolution of rural development and employment generation policies in India.
Public policy analysis: shift from input-based to outcome-based governance.
Role of the President in the legislative process.
Visual Insights
MGNREGA vs. Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G)
A side-by-side comparison of the key features and changes from the erstwhile MGNREGA to the newly approved VB-G RAM G scheme, highlighting enhanced benefits and strategic shifts.
| Feature | MGNREGA (Erstwhile) | VB-G RAM G (New) |
|---|---|---|
| Status | Flagship social security Act | New legislation, replaces MGNREGA |
| Guaranteed Work Days | 100 days per rural household | 125 days per rural household |
| Budget Allocation (FY 2025-26) | Variable (e.g., ₹60,000 Cr in FY24) | ₹1,51,282 crore |
| Focus of Works | Creation of durable assets (water conservation, rural connectivity) | Water security, core rural infrastructure, livelihood-related infrastructure, extreme weather mitigation |
| Approach | 'Created works' focus | Shift to 'outcomes' and impactful asset creation |
| Cost-Sharing (Wage Bill) | 90:10 (Centre:States) | Centre remains principal funding partner (details of new model awaited, but likely similar or enhanced central share) |
| Administrative Costs | States paid 25% | Details for new scheme to be outlined, but Centre remains principal partner |
Key Highlights of Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G)
Snapshot of the most critical numerical details of the new rural employment guarantee scheme, providing immediate context for its scale and ambition.
- Guaranteed Work Days
- 125 days+25 days
- Budget Allocation (FY 2025-26)
- ₹1,51,282 croreSubstantial increase
- Implementing Agency
- Gram Panchayats (Primary)
Increase from 100 days under MGNREGA, aiming to provide enhanced livelihood security for rural households.
Significant financial commitment reflecting the government's focus on rural employment and infrastructure development. This is a substantial increase over previous MGNREGA allocations.
Similar to MGNREGA, Gram Panchayats are expected to play a pivotal role in planning, implementation, and monitoring at the grassroots level.
More Information
Background
Latest Developments
Practice Questions (MCQs)
1. Consider the following statements regarding the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill and its predecessor: 1. The VB-G RAM G Bill increases the guaranteed work days from 100 to 125 per financial year for rural households. 2. Under the erstwhile MGNREGA, the cost-sharing for wage bills between the Centre and States was 90:10, while administrative costs were entirely borne by the Centre. 3. The new legislation emphasizes a shift from 'created works' to 'outcomes', focusing on water security and extreme weather mitigation. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.1 and 3 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is correct as per the news. The VB-G RAM G Bill increases guaranteed work days from 100 to 125. Statement 2 is incorrect. While the wage bill cost-sharing was 90:10 (Centre:States) under MGNREGA, the States paid 25% of the administrative costs, not the Centre bearing them entirely. Statement 3 is correct. The news explicitly mentions the shift from 'created works' to 'outcomes' and lists water security and extreme weather mitigation as focus areas.
2. In the context of India's constitutional framework for social welfare and employment, the enactment of schemes like VB-G RAM G is most directly aligned with which of the following principles or provisions?
- A.Fundamental Rights, ensuring the right to livelihood as a justiciable right.
- B.Directive Principles of State Policy (DPSP), particularly those related to the right to work and public assistance.
- C.The Seventh Schedule, placing 'employment' exclusively under the Union List for central legislation.
- D.Article 32, guaranteeing the right to constitutional remedies for unemployment.
Show Answer
Answer: B
Option B is correct. Schemes like VB-G RAM G (and MGNREGA before it) are manifestations of the state's endeavor to realize the ideals enshrined in the Directive Principles of State Policy (Part IV of the Constitution). Specifically, Article 41 directs the State to make effective provision for securing the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement. Option A is incorrect because the 'right to livelihood' is interpreted as part of the Right to Life (Article 21) but the 'right to work' as a guaranteed employment is a DPSP, not a justiciable Fundamental Right. Option C is incorrect; 'employment' is a complex subject with aspects falling under various lists, but not exclusively Union List. Option D is incorrect; Article 32 is for enforcing Fundamental Rights, not for guaranteeing employment or providing remedies for unemployment directly.
3. Assertion (A): The shift from 'created works' to 'outcomes' under the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) scheme signifies a fundamental change in the approach to rural employment generation. Reason (R): This new approach aims to ensure that assets created are more durable, productive, and directly contribute to sustainable rural livelihoods and broader development goals. Select the correct option:
- A.Both A and R are true and R is the correct explanation of A.
- B.Both A and R are true but R is not the correct explanation of A.
- C.A is true but R is false.
- D.A is false but R is true.
Show Answer
Answer: A
Both Assertion (A) and Reason (R) are true, and R correctly explains A. The shift from 'created works' (focusing on the quantity of work done or assets built) to 'outcomes' (focusing on the quality, utility, and long-term impact of those assets) is indeed a fundamental change. This change is driven by the objective of making the employment generation more effective, ensuring that the assets contribute meaningfully to water security, rural infrastructure, and livelihood enhancement, thereby leading to sustainable rural development.
4. Which of the following statements is NOT correct regarding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) prior to its replacement by VB-G RAM G?
- A.It guaranteed 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
- B.The scheme mandated that at least one-third of the beneficiaries should be women.
- C.Unemployment allowance was payable if employment was not provided within 15 days of applying.
- D.The Gram Panchayat was the sole implementing agency responsible for all aspects from registration to wage disbursement.
Show Answer
Answer: D
Option D is NOT correct. While Gram Panchayats play a crucial role as the primary implementing agency for MGNREGA works, they are not the 'sole' implementing agency responsible for *all* aspects. Block and District level administrations also have significant roles in planning, monitoring, and fund management. Furthermore, wage disbursement often involves banks or post offices, not solely the Gram Panchayat. Options A, B, and C are correct features of MGNREGA. It guaranteed 100 days of work, mandated 1/3rd women beneficiaries, and provided for unemployment allowance.