Centre Proposes New Bill to Replace MGNREGA with Revised Funding Structure

By John Pranay (Editor)

The Centre's proposed VB-G Ram G Bill, 2025, aims to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a new framework. Key points include:

• The bill proposes to increase guaranteed wage employment for rural households from 100 days to 125 days in a financial year.

• States will share costs with the Centre in a 60:40 ratio for all states and Union Territories with legislatures, except for Northeastern and Himalayan states, which will have a 90:10 ratio.

• The Centre will determine state-wise normative allocation for each financial year, and any expenditure beyond this allocation will be borne by the state government.

• States will be able to pause employment guarantee works for up to 60 days in a year during peak sowing and harvesting seasons.

• The bill aims to promote "empowerment, growth, convergence, and saturation for a prosperous and resilient rural Bharat."

The proposed VB-G Ram G Bill, 2025, will replace the MGNREGA, which has provided guaranteed wage-employment to rural households for over 20 years. The new bill aims to promote "empowerment, growth, convergence, and saturation for a prosperous and resilient rural Bharat." The Centre will determine state-wise normative allocation for each financial year, and any expenditure beyond this allocation will be borne by the state government. The funding pattern will be 60:40 for all states and Union Territories with legislatures, except for Northeastern and Himalayan states, which will have a 90:10 ratio.

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted in 2005 to provide a legal guarantee of wage employment for rural households. The scheme has been successful in providing employment to millions of people, but it has also faced criticism for its inefficiencies and lack of transparency. The Centre's proposed VB-G Ram G Bill, 2025, aims to address these issues and provide a more efficient and effective framework for rural employment.

The Centre's proposed VB-G Ram G Bill, 2025, marks a significant shift in the rural employment landscape. The new bill will replace the MGNREGA, which has been in place for over 20 years. The shift towards a normative allocation model and a shared funding model between the Centre and states will likely have a significant impact on the rural employment sector. The bill also introduces a new provision that allows states to pause employment guarantee works for up to 60 days in a year during peak sowing and harvesting seasons.

The Centre's proposed VB-G Ram G Bill, 2025, matters because it aims to provide a more efficient and effective framework for rural employment. The new bill will replace the MGNREGA, which has been in place for over 20 years, and will introduce significant changes to the rural employment landscape. The shift towards a normative allocation model and a shared funding model between the Centre and states will likely have a significant impact on the rural employment sector. The bill also aims to promote "empowerment, growth, convergence, and saturation for a prosperous and resilient rural Bharat."

The Centre's proposed VB-G Ram G Bill, 2025, is expected to be introduced in the Lok Sabha during the ongoing Winter session of Parliament. The bill will likely face opposition from various stakeholders, including state governments and civil society organizations. The Centre will need to address the concerns of these stakeholders and ensure that the new bill is implemented effectively.

Q: What is the Centre's proposed VB-G Ram G Bill, 2025?

A: The Centre's proposed VB-G Ram G Bill, 2025, aims to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a new framework.

Q: What are the key features of the proposed bill?

A: The bill proposes to increase guaranteed wage employment for rural households from 100 days to 125 days in a financial year, and introduces a shared funding model between the Centre and states.

Q: How will the funding be shared between the Centre and states?

A: The funding will be shared in a 60:40 ratio for all states and Union Territories with legislatures, except for Northeastern and Himalayan states, which will have a 90:10 ratio.

Assessment: Bullish.

1. Centre's new VB-G Ram G Bill to replace MGNREGA, pushes 40 per cent funding burden on states — https://www.newindianexpress.com/nation/2025/Dec/15/centres-new-vbg-ram-g-bill-to-replace-mgnrega-pushes-40-per-cent-funding-burden-on-states

2. Govt to bring G RAM G Bill to replace MGNREGA; new law to guarantee 125 days of wage employment — https://economictimes.indiatimes.com/news/india/govt-to-bring-g-ram-g-bill-to-replace-mgnrega-new-law-to-guarantee-125-days-of-wage-employment/articleshow/125983821.cms

3. What is the VB-G RAM G Bill set to replace MGNREGA? All you need to know — https://english.mathrubhumi.com/news/india/viksit-bharat-vb-g-ram-g-bill-mgnrega-features-bxxwbh4m

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.