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VB-G RAM G bill vs MGNREGA: Key differences, new initiatives & Opposition's concerns explained

Under MGNREGA, the Centre used to pay 100% of wages. But, the new scheme operates as a Centrally Sponsored Scheme, where all states will bear 40% of the costs.

Updated on: Dec 18, 2025 10:47 PM IST
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Lok Sabha on Thursday cleared the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, or simply VB-G RAM G bill, amid a strong protest by the Opposition members.

Union Minister Shivraj Singh Chouhan speaks in Lok Sabha during the Winter Session of Parliament, in New Delhi on Thursday. (Sansad TV/ANI Video Grab) (Sansad TV/ANI Video Grab)
Union Minister Shivraj Singh Chouhan speaks in Lok Sabha during the Winter Session of Parliament, in New Delhi on Thursday. (Sansad TV/ANI Video Grab) (Sansad TV/ANI Video Grab)

VB-G RAM G bill, which guarantees 125 days of wage employment to people in rural areas, replaces the UPA-era MGNREGA, that guarantees rural employment.

The government has maintained that the latest bill will not only accelerate rural development, but also provide transparency and accountability mechanisms with enhanced security features and administrative provisions.

However, the Opposition has claimed that the new initiative is not only an attempt to remove Mahatma Gandhi's name, but a measure to dilute the effectiveness of the employment scheme by putting more burden on the state governments, making the scheme ineffective.

What is in new VB-G RAM G bill?

The Centre has asserted that VB-G RAM G Bill will enhance the statutory wage employment guarantee to 125 days in every financial year for unskilled worker, against MGNREGA's 100 days.

manrega vbg ram g

Agriculture minister Shivraj Singh Chouhan, who introduced the bill, said the proposed law will lead to “comprehensive development of villages” and “meant to provide abundant employment to every poor person, uphold their dignity, and offer additional protection to the differently-abled, elderly, women, Scheduled Castes, and Scheduled Tribes”.

Chouhan said the bill will focus on water security by creating lakes, micro-irrigation channels, developing core rural infrastructure, livelihood related infrastructure and special works to mitigate extreme weather events.

The government has said that the proposed law aligns with the vision of Viksit Bharat and empowers the rural households through increased employment opportunities.

However, the Opposition has raised concerns over not just renaming it, but also state's expenditure, centralised decision-making and dilution of the law.

MGNREGA vs VB-G RAM G bill

The Centre has been maintaining that MGNREGA was riddled with corruption during the UPA rule and the expected funds, meant for procuring material, was not used for designated jobs.

However, the new bill is not just about corruption of material procurement, there are several changes in guaranteed days, funding pattern, wage payment, along with new provisions like 60-day pause.

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While MGNREGA was demand driven depending on availability of worker, the new initiative is supply-driven framework, where the allocations have been capped. Any excess expenditure will have to be borne by the state concerned. The Centre has earmarked 95,000 crore for the initiative.

Under MGNREGA, the Centre used to pay 100% of wages and 75% of the material costs. But, the new scheme operate as a Centrally Sponsored Scheme (CSS), where all the states will bear 40% of the costs, while the North-Eastern and Himalayan States/UT will bear 10% of the costs. The provision of state sharing the costs have specifically been the target of the opposition.

There is also a fresh provision of 60-day mandatory ban during the agricultural seasons to facilitate the availability of farm labour during peak sowing and harvesting seasons.

Four priority areas under new initiative

While MGNREGA was based on water supply, drought proofing and land development, the new initiative is based on four priority areas:

Water security: irrigation support, groundwater recharge, etc

Rural infrastructure: roads, public buildings, school infrastructure, sanitation systems

Livelihood related infrastructure: agriculture, livestock, fisheries

Extreme weather events: Disaster preparedness works like shelters, embankments, flood management structures, etc.

There is also a provision of unemployment allowance, where eligible applicants, who are not provided work within designated time-frame, will be provided an unemployment allowances by state governments.

 
ABOUT THE AUTHOR
Majid Alam

Majid Alam is a Chief Content Producer working at Hindustan Times, based in New Delhi. He currently heads shifts at online desk and manages homepage apart from writing, editing and curating articles. With over six years of experience in journalism, Majid has navigated national, politics and international news. His work primarily focuses on the politics of the Hindi heartland, government policies, and South Asia. He also writes on US and Europe’s policies vis-à-vis India. Before joining Hindustan Times, Majid worked at ABP LIVE as the Chief Copy Editor and at News18, where he managed the World and Explainers sections. His articles have featured in Dialogue Earth, The Quint, BMJ, The Diplomat, and Outlook India. Majid has a keen interest in the use of data for storytelling. Majid holds a Masters in Convergent Journalism from Jamia Millia Islamia. He was awarded the Erasmus+ scholarship to study International Affairs at Sciences Po, Paris in 2020. He is also part of the OCEANS Network, an alumni network of Erasmus+ exchange scholars. He is currently serving as the National Representative (India) at the OCEANS Network. Apart from journalism, Majid has a flair for academic writing and loves to teach. He has published a book chapter: 'Bombay Cinema and Postmodernism' in the book: 'Handbook of Research on Social and Cultural Dynamics in Indian Cinema.' He was also part of the OCEANS Network delegation to Hanoi National University of Education in Vietnam in 2025. He has also given guest lecture in digital journalism at AJK MCRC, Jamia Millia Islamia.

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