Viksit Bharat- Guarantee For Rozgar And Ajeevika Mission (Gramin) Bill, 2025

• 18 Dec 2025

For Prelims: Mahatma Gandhi National Rural Employment Guarantee Act, 2005, PM Gati Shakti, Poverty 

For Mains: Rural employment policy in India, Rights-based vs supply-driven welfare models, Role of public works programmes in poverty reduction

Source:TH

Why in News?

The Ministry of Rural Development introduced the Viksit Bharat- Guarantee For Rozgar And Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025 in the Lok Sabha as an upgrade to the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA).  

• The proposed law marks a fundamental shift from a rights-based, demand-driven rural employment scheme to a budget-capped, supply-driven framework aligned with the vision of Viksit Bharat @2047. 
• Rural poverty has declined sharply from 25.7% in 2011–12 to nearly 5% in 2023–24, reducing the need for MGNREGA as a pure distress-relief programme and warranting a shift towards productivity-linked employment.

Summary 

• The VB–G RAM G Bill, 2025 shifts from a universal, demand-driven right to work to a budget-capped, supply-driven model with planned asset creation. 
• While aimed at fiscal predictability and livelihood integration, it raises concerns over coverage, State finances, and income security for vulnerable rural households. 

What are the Key Provisions of the Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025?

• Statutory Wage Employment Guarantee: Provides a legal guarantee of 125 days of wage employment per rural household per financial year to adult members willing to undertake unskilled manual work. 
• Conditional and Non-Universal Coverage: Unlike MGNREGA’s universal coverage, employment under the Bill will be available only in rural areas notified by the Union Government, making the guarantee conditional rather than nationwide. 
• Bottom-Up Planning through VGPPs: Mandates preparation of Viksit Gram Panchayat Plans (VGPPs) using spatial technology, aggregated at Block, District, and State levels, and integrated with PM Gati Shakti for coordinated infrastructure planning. 
• Centrally Sponsored Scheme (CSS) Structure: Significantly increases the financial burden on States by revising the cost-sharing pattern to 60:40 for most States (from the earlier 10% share under MGNREGA), while retaining 90:10 only for North-Eastern and Himalayan States/UTs. 
  • State-wise allocations will be determined annually by the Union Government based on objective parameters, curtailing flexibility to expand spending in response to distress or rising demand. 

• Flexibility during Agricultural Seasons: The Bill empowers States to pause the programme for up to 60 days in a financial year during peak sowing and harvesting seasons, ensuring the availability of farm labour for agricultural activities. 
• Unemployment Allowance Provision: Mandates payment of unemployment allowance by State Governments if employment is not provided within 15 days of demand. 

Limitation of VB–G RAM G Bill, 2025:  

• Erosion of the Right to Work: Critics argue that the Bill weakens the rights-based framework of MGNREGA by converting a demand-driven, legally enforceable entitlement into a supply-driven, budget-capped programme. 
• Loss of Universal Coverage: Employment is no longer guaranteed across all rural areas and is limited to regions notified by the Centre, raising concerns of exclusion of needy households. 
• Increased Financial Burden on States: The revised cost-sharing pattern (60:40 for most States) significantly raises States’ fiscal responsibility, which may constrain effective implementation, especially in poorer States. 
• Capped Allocations Limit Responsiveness: Fixed State-wise normative allocations restrict the ability to expand employment during periods of distress. 
  • Provision allowing suspension of work for up to 60 days during agricultural seasons is criticised for reducing income support during periods when rural households may still need employment. 

Key Government Initiatives to Promote Rural Growth and Employment 

• Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM): Promotes self-employment through SHGs, financial inclusion, and livelihood diversification in rural areas. 
• Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): Focuses on skill development and placement-linked employment for rural youth. 
• Survey of Villages and Mapping with Improvised Technology in Village Areas: Provides property cards to rural households, enabling access to credit and investment. 
• PM Vishwakarma: Supports traditional artisans through skilling, toolkits, and credit linkage to generate rural non-farm employment. 

What are the Key Issues Hindering Effective Rural Growth and Employment in India?

• Low-quality Employment Dominance: As per Periodic Labour Force Survey (PLFS 2022–23), nearly 45% of rural workers remain self-employed in low-productivity agriculture, with disguised unemployment persisting. 
• MGNREGA Fiscal and Operational Stress: Comptroller and Auditor-General of India (CAG) highlights issues of delayed wage payments, frequent fund shortages, and rising pending liabilities under MGNREGA due to its open-ended demand-based nature. 
• Skill Mismatch: National Skill Development Corporation (NSDC) reports indicate that rural skilling programmes often lack alignment with local market demand, leading to low placement and retention rates. 
• Climate Vulnerability: IPCC AR6 notes that agriculture-dependent rural livelihoods are highly exposed to climate shocks, worsening employment volatility and income uncertainty.

What Measures Can Be Adopted to Further Strengthen Rural Growth and Employment in India?

• Strengthen Convergence Across Schemes: Effective integration of DAY–NRLM, DDU-GKY, and PM Vishwakarma can ensure that short-term wage employment translates into sustainable livelihoods through skilling, credit access, and market linkage. 
• Promote Rural Non-farm Employment: Expansion of rural MSMEs, agro-processing units, handicrafts, and service enterprises is essential to absorb surplus agricultural labour.  
  • Cluster-based development, common facility centres, and improved logistics can boost rural manufacturing and services. 
• Build climate-resilient rural livelihoods: Investments in climate-smart agriculture, watershed management, drought-proofing, and renewable energy-based livelihoods can reduce vulnerability to climate shocks and stabilise rural employment. 
• Empower Panchayati Raj Institutions (PRIs): Greater devolution of funds, functions, and functionaries along with capacity building of PRIs will improve local planning, implementation, and accountability of rural development programmes. 
• Leverage Digital and Financial Inclusion: Expanding Direct Benefit Transfer Scheme, digital payments, rural broadband, and credit access through SHGs and FPOs can enhance transparency, reduce leakages, and support rural entrepreneurship.

Conclusion 

The reform reflects changing rural realities but risks weakening income security for the poorest. A balanced model that protects the right to work while creating productive, climate-resilient assets is crucial to achieve SDG 1 (No Poverty) and SDG 8 (Decent Work). 

Drishti Mains Question: 

Evaluate the role of rural employment programmes in creating climate-resilient assets.

Frequently Asked Questions (FAQs) 

1. What is the objective of the VB–G RAM G Bill, 2025?
It seeks to replace an open-ended, demand-driven employment guarantee with a budget-capped, supply-driven programme aligned with long-term rural development goals. 

2. How many days of wage employment are guaranteed per rural household under VB–G RAM G Bill, 2025?
The framework provides a statutory guarantee of125 days of unskilled wage employment per rural household per financial year.  

3. What are Viksit Gram Panchayat Plans (VGPPs)? 
VGPPs are bottom-up plans prepared using spatial technology, aggregated at higher levels and integrated with PM Gati Shakti for coordinated infrastructure planning.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims 

Q. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (2011)

(a) Adult members of only the scheduled caste and scheduled tribe households   

(b) Adult members of below poverty line (BPL) households   

(c) Adult members of households of all backward communities  

(d) Adult members of any household   

Ans: (d)

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Mains 

Q. “An essential condition to eradicate poverty is to liberate the poor from the process of deprivation.” Substantiate this statement with suitable examples. (2016)

Q. “Poverty alleviation programs in India remain mere showpieces until and unless they are backed up by political will.” Discuss with reference to the performance of the major poverty alleviation programmes in India. (2015)