Centre’s new VB–G Ram G Bill to replace MGNREGA, pushes 40 per cent funding burden on states

NEW DELHI: The Centre is expected to introduce the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB–G Ram G Bill) in the Lok Sabha this week. The proposed legislation seeks to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).The Bill proposes to increase guaranteed wage employment for rural households from 100 days to 125 days in a financial year. A major shift under the new framework is a revised fund-sharing pattern, under which states will be required to bear a larger share of the scheme’s financial responsibility.As per the Bill, the Centre and states will share costs in a 60:40 ratio for all states and Union Territories with legislatures. However, for North-Eastern and Himalayan states, including Uttarakhand, Himachal Pradesh, and Jammu and Kashmir, the funding pattern will remain 90:10 between the Centre and the states.Under the existing MGNREGA framework, the Central Government bears the full cost of wages for unskilled manual work, up to three-fourths of material costs, and three-fourths of wages for skilled and semi-skilled workers. While the new Bill alters the funding structure, it retains the existing wage rates as notified under Section 6 of the MGNREGA.The proposed legislation also provides for the constitution of a Central Gramin Rozgar Guarantee Council and State Gramin Rozgar Guarantee Councils to oversee, review, monitor, and effectively implement the scheme. In addition, steering committees at the Central and state levels will be set up to recommend matters related to normative allocations, convergence, and other operational issues.Another significant provision allows states to pause implementation of the scheme during peak agricultural seasons. The Bill empowers states to notify specific periods covering sowing and harvesting seasons during which works under the scheme will not be undertaken, to ensure adequate availability of farm labour.The Bill also proposes a special schedule of rates for vulnerable groups, including women, the elderly, persons with disabilities, and those with debilitating ailments, to enable their participation in suitable categories of work.Further, it retains the provision for a daily unemployment allowance if employment is not provided within 15 days of application. State governments will bear the cost of the unemployment allowance and delay compensation. In cases where wages are not paid within 15 days of closure of the muster roll, workers will be entitled to compensation at the rate of 0.05 per cent of unpaid wages per day beyond the sixteenth day.



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