Government Moves to Replace MGNREGS with VB-G RAM G: A Major Shift in Rural Employment Policy

The Union government has introduced the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G, proposing to repeal and replace the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The new legislation, tabled in Parliament in December 2025, marks a significant shift in how rural employment and public works will be structured as India aligns its welfare policies with the broader Viksit Bharat @2047 development vision.

MGNREGS, enacted in 2005, was designed as a rights-based programme guaranteeing 100 days of wage employment to rural households on demand. Over the years, it has functioned as a safety net for millions, particularly during economic slowdowns, droughts, and the COVID-19 pandemic. The government now argues that changing rural realities require a more outcome-oriented and infrastructure-focused framework.

The new scheme proposes a major departure from the MGNREGS framework on three key parameters – funding, availability of work, and central oversight over disbursal of funds. (ANI) | Hindustan Times

What the VB-G RAM G Bill Proposes

Under the proposed VB-G RAM G Act, rural households willing to perform unskilled manual labour would be guaranteed up to 125 days of wage employment annually, exceeding the existing MGNREGS entitlement. Government officials have stated that the increased workdays reflect an effort to expand employment opportunities while simultaneously creating durable and productive rural assets.

The new framework places greater emphasis on infrastructure development, including water conservation, climate-resilient works, rural connectivity, and livelihood-linked assets. The scheme is also expected to integrate digital platforms to track assets and expenditures, aligning rural development projects with national planning systems and improving transparency.

A key structural change lies in the proposed funding and planning mechanism. Unlike MGNREGS, which is demand-driven and legally enforceable at the household level, VB-G RAM G is designed around a more structured allocation model, with states expected to align their plans with national priorities within a fixed timeline.

Rationale Behind the Policy Shift

The government has positioned VB-G RAM G as a modernisation of rural employment policy, arguing that MGNREGS has increasingly turned into a consumption-support programme rather than a development-oriented one. Officials maintain that the new law will ensure public funds are directed toward projects that generate long-term economic value, improve rural productivity, and strengthen local infrastructure.

Supporters of the bill also argue that a unified national framework will reduce delays, curb inefficiencies, and align employment generation with broader goals such as climate adaptation and sustainable livelihoods.

Political Pushback and Public Debate

The proposed repeal of MGNREGS has triggered sharp political reactions. Opposition parties have criticised the move as a dilution of a hard-won, rights-based employment guarantee and have objected to the removal of Mahatma Gandhi’s name from one of India’s most recognisable welfare programmes. Protests inside and outside Parliament have highlighted concerns that the new scheme could weaken workers’ ability to demand employment during times of distress.

Several critics have also questioned the shift away from a demand-driven model, warning that fixed allocations may limit employment availability precisely when rural households need it most. Concerns have been raised about increased financial pressure on states and the potential erosion of cooperative federalism.

Notably, reservations have not been confined to opposition ranks alone. Some political allies of the ruling coalition have also sought clarity on cost-sharing arrangements and implementation details, indicating unease about how the new framework will operate on the ground.

Economic and Social Implications

From a policy perspective, the transition from MGNREGS to VB-G RAM G represents a broader philosophical shift—from employment as a legal right to employment as a development instrument. While the government views this as a necessary evolution, economists and social policy experts remain divided on whether infrastructure-led employment can adequately replace the protective function MGNREGS has played for rural households.

The outcome will depend heavily on implementation, funding adequacy, and the extent to which rural workers retain access to guaranteed employment during economic or climatic shocks. As Parliament debates the bill, these questions are likely to remain central to the national conversation on rural welfare.

The MGMM Outlook

The proposed replacement of MGNREGS with the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) reflects an evolving approach to rural employment in line with India’s long-term development objectives. While MGNREGS played a critical role as a safety net during periods of economic stress, the new framework seeks to reorient employment generation toward the creation of durable assets and improved rural infrastructure. By increasing the annual employment guarantee to 125 days and focusing on areas such as water conservation, climate-resilient works, and livelihood-linked projects, the policy aims to strengthen rural productivity while aligning employment programs with national development planning.

The transition also highlights broader discussions around balancing social protection with economic transformation. The shift from a purely demand-driven mechanism to a structured planning model underscores an emphasis on efficiency, transparency, and outcome-based implementation. As the proposal is examined and debated, attention remains focused on ensuring that rural households continue to have reliable access to employment while public resources are directed toward projects that generate sustained economic value. The effectiveness of this transition will ultimately depend on implementation, coordination with states, and the ability of the framework to remain responsive to rural needs across varying conditions.

(Sources: Hindustan Times, Economic Times, Business Standard)