VB-G RAM G Act Replaces MGNREGA, Opposition Cries Foul

The Indian union government introduced the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) or VB-G RAM G Bill, 2025 on 16 Dec amid protests by the Opposition. The Bill replaces the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Indian National Congress (INC) Member of Parliament (MP) Priyanka Gandhi said, ‘The new Act weakens the right-based structure of the MGNREGA’. The opposition parties protested in the Parliament but were fixated on the name change of the Act—removing Gandhi and the new Act’s religious sounding name—rather than the implications of the Act. While MGNREGA was demand driven, under VB-G RAM G the union government will allocate funds to states for each financial year and any expenditure incurred in excess would be borne by the state government. Under MGNREGA, the material cost was shared between the union government and states in the ratio of 75:25. Under the new law, the financial liability will be shared between the union and the state governments in the ratio 60:40 for most states. In Panjab, the ruling Aam Aadmi Party (AAP) has condemned the move. AAP Panjab spokesperson Neel Garg said, ‘The union government has sounded the death knell of MGNREGA’. Garg warned that more than 120M rural workers, who currently hold MGNREGA job cards, will be directly affected. While the government claims an increase in guaranteed workdays from 100 to 125 days, critics argue this is deceptive as the new law takes away the guarantee of work. Clause 68 of the new Act states that during 60 days of the agricultural season, there is no obligation to provide employment. Under MGNREGA, employment demand was assessed at the grassroots level, with workers approaching the panchayat (village council) directly. Garg questioned how rural laborers would now access employment. MGNREGA had marked a conscious effort to rethink the Indian state’s relationship with rural workers. Senior INC leader Sonia Gandhi clarified that MGNREGA was not only an INC Act, but was supported by the whole country and had proven a lifeline during the COVID pandemic. The INC will now lead a India-wide protest against the new Act. (earlier coverage).