·The Hindu·15 marks·250–350 words

The VB-G RAM G Act, 2025 marks a paradigm shift from rights-based to supply-driven rural employment. Critically evaluate the implications of this transition for India's rural poor.

In this answer
  1. Gains for the rural poor
  2. Risks of the supply-driven shift

The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 replaced MGNREGA, 2005 with effect from 1 July 2026 [1][3]. It retains statutory form but recasts the guarantee from an on-demand, Centre-funded entitlement into a normatively allocated, cost-shared mission — expanding benefits on paper while diluting enforceability.

Gains for the rural poor

  • Wider entitlement: guaranteed employment raised from 100 to 125 days per rural household per year [1].
  • Wage floor: a statutory ₹300/day floor, lifting 21 States/UTs that paid below it; national average wage rose from ₹298.8 to ₹327.4 [2].
  • Better assets: works are focused on water security, rural and livelihood infrastructure, and extreme-weather mitigation, with planning aligned to PM Gati Shakti — addressing MGNREGA's durable-asset criticism [1].
  • Front-loaded funding: a first instalment of ₹25,863 crore was released to States, aiding timely wage payment [4].

Risks of the supply-driven shift

  • Loss of demand as a legal claim: normative allocation caps mean work is provided as budgeted, not as demanded — weakening the counter-cyclical shock absorber precisely in drought or distress years, and thinning the Article 41 (right to work) promise.
  • Fiscal federalism strain: Centre–State cost-sharing replaces full Central wage funding [1]; fiscally stressed States like Bihar and Uttar Pradesh may under-provide, widening inter-State disparity in a floor-plus-State-top-up wage structure [2].
  • Seasonal pause: the 60-day State-notified peak-agriculture pause may be misused to suppress genuine demand [1].
  • Accountability deficit: gram sabhas lose the leverage of demanding work as an enforceable right.

On balance the Act deepens the value of the guarantee — more days, higher wages, better assets — but makes its availability contingent on budgets and State capacity. The gains will hold only if normative allocations follow a transparent, distress-linked formula with a contingency window in drought years, and social audits are retained. Reform framed this way can serve both Article 41 and SDG-8 (decent work) as India moves toward Viksit Bharat 2047.

Sources

  1. 1The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) VB–G RAM G Bill, 2025 — PRS Legislative Researchreplacement of MGNREGA, 125-day guarantee, cost-sharing shift, work domains, Gati Shakti linkage, seasonal pause
  2. 2Government Notifies Revised Wage Rates under the VB–G RAM G Act, 2025 — PIB, Ministry of Rural Development₹300 floor wage, 21 States/UTs raised, ₹298.8 → ₹327.4 average
  3. 3VB-G RAM G Act comes into force across the country from today — PIBcommencement on 1 July 2026
  4. 4First Instalment of ₹25,863 Crore Released to States under VB-G-RAM-G — PIBCentral fund release to States

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