India Unveils Viksit Bharat- G RAM G Bill for Rural Employment
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Overview of the Viksit Bharat- G RAM G Bill, 2025
The Government of India has finalised a new financial architecture for rural employment under the Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, commonly referred to as the Viksit Bharat- G RAM G Bill, 2025. This legislation replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a revised framework that introduces updated Centre-State cost sharing ratios and aligns rural employment guarantees with the Viksit Bharat 2047 vision.[1]
The Bill shifts the programme from a central sector scheme to a centrally sponsored scheme, emphasising cooperative federalism. States now share both financial and implementation responsibilities, with a standard cost-sharing ratio of 60:40 between the Centre and states. Enhanced support is provided to North Eastern and Himalayan states at 90:10, while Union Territories without legislatures receive 100 per cent central funding.[1]
This restructuring aims to strengthen accountability, improve infrastructure outcomes, and enhance income security for rural households. The total estimated annual funding requirement stands at Rs.1,51,282 crore, including the state share, with the Centre contributing Rs.95,692.31 crore.[1]
Background and Evolution of Rural Employment Policies
Rural development policies in India have historically prioritised poverty reduction, agricultural productivity enhancement, and employment generation for surplus rural labour. Since Independence, wage employment programmes have evolved as critical tools for livelihood support and rural infrastructure development, adapting to socio-economic changes over decades.[1]
MGNREGA, enacted in 2005, provided a 100-day wage employment guarantee to rural households. While it achieved gains in participation, digitisation, and transparency, structural weaknesses persisted, including implementation gaps and limited alignment with long-term development goals. The Viksit Bharat- G RAM G Bill addresses these by introducing a comprehensive statutory overhaul.[1]
The new framework responds to contemporary challenges such as climate resilience, infrastructure needs, and the demand for more robust administrative support. It increases the administrative expenditure ceiling from 6 per cent to 9 per cent, enabling better staffing, training, and technical capacity at the grassroots level.[1]
Key Provisions on Employment Guarantee
Central to the Bill is the guarantee of 125 days of wage employment per rural household annually, available to households whose adult members volunteer for unskilled manual work. This exceeds the previous 100-day entitlement, providing greater income security.[1]
An aggregated 60-day no-work period ensures labour availability for agriculture during peak sowing and harvesting seasons. States will notify these pauses, preventing wage inflation and supporting farmers.[1]
In cases where work is not provided within 15 days of demand, states must pay a daily unemployment allowance, with rates and conditions prescribed through rules. This provision safeguards workers' rights while incentivising timely employment provision.[1]
Revised Financial Architecture
The transition to a centrally sponsored scheme marks a pivotal change. Funding is allocated normatively, based on regional realities through Gram Panchayat Plans, fostering state ownership and efficiency.[1]
The 60:40 Centre-State ratio for most states reflects calibrated support aligned with fiscal capacities. Special categories receive tailored assistance to account for geographical and economic challenges. This architecture prevents misuse, strengthens incentives for effective implementation, and promotes a partnership model where the Centre sets standards and states execute with accountability.[1]
| Category | Centre Share | State Share |
|---|---|---|
| General States | 60% | 40% |
| North Eastern & Himalayan States | 90% | 10% |
| Union Territories without Legislatures | 100% | 0% |
This table summarises the revised cost-sharing ratios, ensuring equitable resource distribution.[1]
Focus on Infrastructure and Asset Creation
The Bill prioritises productive asset creation to bolster the rural economy. Works emphasise water-related activities for agriculture and groundwater recharge, core infrastructure like roads and connectivity, and livelihood assets such as storage and markets.[1]
Climate resilience features prominently, with investments in water harvesting, flood drainage, and soil conservation. These measures improve market access, enable income diversification, and reduce distress migration.[1]
Digital tools enhance transparency: attendance tracking, wage payments, and data-driven planning through Viksit Gram Panchayat Plans ensure predictable work availability and secure payments.[1]
Administrative Enhancements
The raised administrative ceiling to 9 per cent supports professionalisation. Funds will cover staffing, remuneration, training, and technical support, improving planning, execution, and service delivery at the village level.[1]
Gram Panchayat-level planning grounds implementation in local needs, while strengthened accountability mechanisms address past shortcomings.[1]
Impacts on Stakeholders
Benefits for Rural Households and Labourers
Rural households gain from higher employment days, leading to increased earnings and consumption. Assets created directly benefit communities, enhancing resilience.[1]
Labourers receive predictable work, digital wage security, and unemployment allowances. The framework promotes timely provision, reducing delays.[1]
Support for Farmers
Agricultural seasons are protected through notified pauses, ensuring labour availability. Improved irrigation, storage, and connectivity from public works boost productivity without wage pressures.[1]
State Governments' Role
States bear partial funding and full implementation responsibility, including unemployment allowances. This incentivises efficiency, with normative allocations tied to performance.[1]
The model fosters cooperative federalism, aligning local execution with national standards.[1]
Funding Projections and Sustainability
The estimated Rs.1,51,282 crore annual outlay covers wages, materials, and administration. Centre's Rs.95,692.31 crore share underscores commitment, calibrated to avoid undue state burden.[1]
By linking employment to durable assets, the Bill ensures long-term returns, stimulating rural economies and reducing migration.[1]
The Viksit Bharat- G RAM G Bill, 2025 responds to this experience through a comprehensive legislative reset. It strengthens the implementation framework by increasing the administrative expenditure ceiling from 6 per cent to 9 per cent, providing greater support for staffing, remuneration, training, and technical capacity.
This official statement from the Press Information Bureau highlights the focus on capacity building.[1]
Implementation Roadmap
Following finalisation, the Bill awaits parliamentary approval. Post-enactment, rules will detail unemployment allowances, season pauses, and wage rates. States must prepare Gram Panchayat Plans and staffing.[1]
Digitisation builds on MGNREGA's foundations, with enhancements for real-time monitoring.[1]
Monitoring and Accountability
- Digital attendance and wage systems for transparency.
- Data-driven planning at panchayat level.
- State liability for unemployment allowances.
- Normative funding tied to outcomes.
These elements ensure robust oversight.[1]
Broader Context in Rural Development
This reform integrates with Viksit Bharat 2047, modernising employment guarantees for infrastructure and resilience. It builds on MGNREGA's legacy while fixing gaps.[1]
Administrative professionalisation and state partnerships promise improved outcomes. Higher employment days address income needs amid evolving rural dynamics.[1]
Expected Administrative Impacts
States face new fiscal commitments but gain flexibility in execution. Capacity building reduces leakages, enhancing efficiency.[1]
At the district and panchayat levels, increased staffing streamlines operations. Digital tools minimise corruption risks.[1]
Public Impact and Rural Economy
Households benefit from 25 additional workdays, boosting incomes by approximately 25 per cent over prior levels, assuming consistent uptake. Asset creation sustains gains.[1]
Reduced migration stabilises villages, while farmer protections support agriculture. Climate-focused works build long-term security.[1]
The financial architecture ensures sustainability, with shares reflecting capacities. This positions rural India for inclusive growth.[1]
Comparison with MGNREGA
| Aspect | MGNREGA | Viksit Bharat- G RAM G Bill |
|---|---|---|
| Employment Days | 100 days | 125 days |
| Scheme Type | Central Sector | Centrally Sponsored |
| Cost Sharing (General) | 100% Centre | 60:40 |
| Admin Ceiling | 6% | 9% |
| Unemployment Allowance | After 15 days | State liability after 15 days |
This comparison illustrates upgrades in entitlement, funding, and governance.[1]
Alignment with National Goals
The Bill supports Viksit Bharat 2047 by integrating employment with infrastructure, climate action, and digital governance. It strengthens rural foundations for a developed India.[1]
Stakeholder consultations shaped the framework, ensuring practicality.[1]
In summary, the new architecture revitalises rural employment, promising enhanced outcomes through revised ratios, higher guarantees, and focused investments. Implementation will determine realisation of these objectives.[1]
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