Viksit Bharat-G RAM G Bill 2025: A New Era for Rural Employment

Overview of the Viksit Bharat-G RAM G Bill 2025

The Lok Sabha has passed the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, commonly referred to as the Viksit Bharat-G RAM G Bill. This legislation repeals the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) and introduces a new statutory framework for rural employment generation. The Bill aligns rural development initiatives with the Viksit Bharat 2047 vision, emphasizing infrastructure creation, accountability, and decentralized planning.[1][3]

Announced as a comprehensive overhaul, the Bill shifts from the previous central sector scheme to a centrally sponsored framework. It guarantees 125 days of employment per household, up from 100 days under MGNREGA, while introducing shared funding responsibilities between the Centre and states. Panchayats receive an enhanced role in planning and supervision, with mandatory social audits integrated into the implementation process to ensure transparency and community oversight.[1][3]

Announcement and Legislative Passage

The Union Government proposed the Viksit Bharat-G RAM G Bill in response to structural limitations observed in MGNREGA's implementation. The Bill was introduced in the Lok Sabha during the winter session of Parliament. On Thursday, amid procedural discussions, the House passed it by voice vote, marking the replacement of the UPA-era MGNREGA framework.[3]

Prior to passage, the Bill underwent consultations that highlighted the need for improved administrative capacity, better asset creation, and stronger accountability mechanisms. The Press Information Bureau detailed key takeaways, noting the Bill's focus on professionalizing programme management through increased administrative funding.[1]

Following Lok Sabha approval, the legislation moves toward Rajya Sabha consideration and eventual enactment. States have expressed varied responses, with some seeking additional central support for rollout, particularly those facing revenue constraints.[5]

Key Provisions Enhancing Panchayat Roles

Panchayats are positioned at the core of the new framework through decentralized planning via Viksit Gram Panchayat Plans. These plans are prepared at the local level and integrated spatially with national systems like PM Gati Shakti, ensuring alignment between village-level needs and broader development goals.[1]

Under the Bill, Panchayats gain supervisory authority over worksites. This includes real-time monitoring using GPS and mobile-based tools. Panchayats aggregate assets created under the programme into the Viksit Bharat National Rural Infrastructure Stack, fostering a unified national development strategy.[1]

Planning becomes demand-driven and regionally grounded, with Gram Panchayat Plans serving as the foundation. This decentralization empowers local bodies to prioritize works based on community requirements, such as water conservation, rural connectivity, and livelihood infrastructure.[1]

Mandatory Social Audits and Transparency Measures

Mandatory social audits are built into the implementation at least once every six months. These audits promote community participation, allowing villagers to verify works, expenditures, and outcomes. Panchayats oversee this process, complemented by public disclosures and real-time Management Information System (MIS) dashboards.[1]

The transparency framework extends to artificial intelligence and biometric authentication for early detection of irregularities. Central and State Steering Committees provide guidance, while weekly public disclosures ensure visibility at every stage.[1]

"Panchayats are assigned an enhanced role in supervision, complemented by GPS and mobile-based monitoring of works in real time. Real-time MIS dashboards and weekly public disclosures ensure public visibility, while social audits mandated at least once every six months reinforce community participation and trust."[1]

Financial and Administrative Reforms

The Bill transitions MGNREGA from a central sector scheme to a centrally sponsored one, introducing a 60:40 cost-sharing ratio between the Centre and states for most states. North Eastern and Himalayan states receive 90:10 support, while Union Territories without legislatures get 100 per cent central funding.[1][3]

Administrative expenditure ceiling rises from 6 per cent to 9 per cent, allocating more resources for staffing, training, and technical capacity. This aims to professionalize implementation and improve service delivery at the grassroots level.[1]

Total estimated annual funding stands at Rs.1,51,282 crore, including state shares, with the Centre contributing Rs.95,692.31 crore. State-wise normative allocations are determined annually by the Centre, with states responsible for expenditures exceeding norms.[1][3]

Unemployment allowance provisions remain, payable after 15 days if work is not provided, with liability on states. Rates and conditions will be prescribed through rules.[1]

Employment and Asset Creation Focus

Households are guaranteed 125 days of wage employment annually, prioritizing water-related works, rural roads, and climate-resilient infrastructure. Assets support agriculture, groundwater recharge, market access, and income diversification.[1]

Seasonal pauses in public works during peak sowing and harvesting ensure labour availability for farmers, preventing wage inflation. Digital attendance and wage payments enhance security and efficiency.[1]

Works are categorized into four rural development verticals for focused tracking: water conservation, connectivity, livelihoods, and resilience. This structure facilitates better outcomes in household incomes and reduced migration.[1]

Comparison with MGNREGA

The new Bill addresses MGNREGA's shortcomings by enhancing employment days, decentralizing planning, and mandating technology-driven oversight. While MGNREGA provided 100 days with full central wage funding, the VB-G RAM G Bill increases days to 125 but shares costs, incentivizing state efficiency.[1][3]

This table illustrates structural upgrades, fixing weaknesses in transparency, planning, and accountability.[1]

Administrative Impacts

Enhanced Panchayat roles streamline local governance, integrating rural employment with broader infrastructure goals. Increased administrative funding supports better staffing, reducing implementation gaps observed under MGNREGA.[1]

Normative allocations and shared responsibility promote fiscal discipline among states, while technology integration minimizes leakages. Real-time monitoring and social audits empower communities, fostering trust in public spending.[1]

At the national level, the Viksit Bharat National Rural Infrastructure Stack unifies assets, enabling coordinated development. This could accelerate progress toward Viksit Bharat 2047 by linking employment to durable outcomes.[1]

Public and Stakeholder Responses

Stakeholders note the Bill's potential to boost rural economies through productive assets. Farmers stand to gain from assured labour and improved irrigation, while workers benefit from higher earnings and digital payments.[1]

Some states, like Andhra Pradesh, have requested central assistance for rollout, citing revenue challenges. West Bengal announced a state scheme in response, renaming it after Mahatma Gandhi.[4][5]

Economists and activists have highlighted concerns over funding shifts, viewing them as potential dilutions, though the Bill maintains employment guarantees with added safeguards.[6]

Implementation Roadmap

Post-enactment, rules will detail unemployment allowances, work pauses, and audit procedures. States must prepare for cost-sharing, with normative allocations issued annually.[1][3]

1. Development of Viksit Gram Panchayat Plans at local levels.
2. Integration with national platforms like PM Gati Shakti.
3. Rollout of digital tools for attendance, payments, and monitoring.
4. Initiation of mandatory social audits within six months.
5. Formation of Central and State Steering Committees.

This phased approach ensures smooth transition, building on MGNREGA's digitization gains.[1]

Broader Rural Development Implications

By prioritizing climate-resilient works, the Bill strengthens rural resilience against floods and droughts. Livelihood infrastructure like storage and markets diversifies incomes, reducing distress migration.[1]

Linkages with schemes like PMVBRY, approved earlier in July 2025, complement rural efforts by incentivizing jobs across sectors.[2]

Village-level consumption is expected to rise with higher earnings, stimulating local economies. Reduced migration supports family stability and education continuity.[1]

Challenges and Capacity Building

States with fiscal constraints may face initial hurdles in matching contributions. Enhanced administrative support aims to mitigate this through training and staffing.[1][5]

Panchayats require capacity building for new supervisory roles and plan preparation. Technical assistance via the 9 per cent ceiling addresses this.[1]

Mandatory audits demand community mobilization, ensuring active participation beyond elite capture.[1]

Long-Term Vision Alignment

The Bill embodies a shift toward outcome-focused rural policy, where employment generates lasting assets. Decentralized Panchayat-led planning ensures relevance, while audits uphold integrity.[1]

Integration into national stacks positions rural India as a contributor to Viksit Bharat 2047, with infrastructure driving growth and equity.[1]

As implementation unfolds, monitoring outcomes in employment, assets, and incomes will gauge effectiveness, refining the framework iteratively.