Critically evaluate the shift from MGNREGA to the VB–G RAM G Act, 2025 in terms of entitlement, accountability and fiscal federalism.
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The VB–G RAM G Act, 2025 repealed MGNREGA, 2005. It changes India's rural job guarantee, which gives statutory effect to the Article 41 right to work [1]. The new law promises more days, digital accountability and Centre-fixed funding. Its design is stronger on paper, but it weakens the demand-driven nature of the old guarantee.
Entitlement
- (+) The guarantee rises from 100 to 125 days per rural household. Wages are due weekly, and in any case within 15 days [1].
- (−) A 60-day agricultural pause shortens the period in which those days can be worked [1].
- (−) Enforcement was weak under the old law. Bihar, Karnataka and Rajasthan paid no unemployment allowance between 2018 and 2023 [6].
Accountability
- (+) The Grievance Redressal Rules, 2026 set up Gram Panchayat, Block and District tiers with DPI tracking. They fix a 7-day enquiry and 15-day resolution, then escalate automatically. No complaint can be rejected for its format or language [2].
- (+) AI and biometric checks help detect irregularities [3].
- (−) MGNREGA had the same 7-day limit, yet Sangrur (Punjab) settled complaints up to 436 days late [4].
- (−) Escalation moves the file upward, but the Rules name no penalty for the officer who misses the deadline [2].
- (−) The independent check is thin: only 585 of 740 districts had an Ombudsman [5].
- (−) Many wage delays come from failed Aadhaar–bank links, which a Block officer cannot fix [7].
Fiscal federalism
- (+) The administrative expenditure cap rises from 6% to 9%, which pays for staff and training [3].
- (+) North-Eastern and Himalayan States get a 90:10 share [1].
- (−) The 60:40 Centre–State split puts more of the cost on States [1].
- (−) The Centre sets a normative allocation, and States pay any spending above it [1]. This turns a demand-driven right into a capped budget, so poorer States may give out less work.
Overall, the Act widens the entitlement and digitises accountability, but funding caps and cost-shifting could empty the guarantee of real force. Three steps would help:
- fill Ombudsman posts and raise delay compensation, as the Standing Committee urged [5]
- feed DPI delay records into officers' performance reviews
- make normative allocations respond to demand through Centre–State consultation
With these, the 125-day promise can become a working right under Article 41 and SDG 8.
Sources
- 1PRS Legislative Research – Bill Summary: Viksit Bharat – G RAM G Bill, 2025125 days; 60-day pause; 60:40 and 90:10 funding; normative allocation, with States paying any excess
- 2PIB – Ministry of Rural Development Notifies Grievance Redressal Rules, 2026 under VB–G RAM G Actgrievance tiers, DPI tracking, 7- and 15-day deadlines, escalation, no rejection on procedural grounds
- 3PIB Backgrounder – Viksit Bharat G RAM G Act 2025: "Reforming MGNREGA for Viksit Bharat"administrative cap raised from 6% to 9%; AI and biometric authentication
- 4CAG – Performance Audit of MGNREGS, Punjab (2022), Chapter V: Grievance Redressal, Monitoring and Internal ControlSangrur complaints settled 10–436 days late against a 7-day limit
- 5Standing Committee on Rural Development and Panchayati Raj (2024–25), Eighth ReportOmbudsman in only 585 of 740 districts; recommendations on Ombudsman posts and delay compensation
- 6PRS – Standing Committee Report Summary: Rural Employment through MGNREGA – An Insight into Wage Rates and Other Mattersno unemployment allowance paid in Bihar, Karnataka and Rajasthan (2018–23)
- 7PRS – Standing Committee Report Summary: Critical Evaluation of MGNREGAwage delays caused by inactive Aadhaar links and closed bank accounts
Practice
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