PolitySource: The Hindu
Draft Rules for VB-G RAM G Act, 2025 Released by Centre
Monday, 25 May 2026
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The Centre has released draft rules for the new Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G) Act, 2025, set to replace MGNREGA from July 2026. This change is crucial for UPSC aspirants, especially for GS Paper 2 and 3, focusing on governance and economic development. Last Updated: 25-05-2026
Key Facts About VB-G RAM G Act, 2025
- The Act will replace MGNREGA from July 2026.
- Introduces a "Normative Allocation" funding model based on the 16th Finance Commission recommendations.
- Prioritizes poorer states with a 42.5% weightage on GSDP distance.
- Cost-sharing ratio of 60:40 between Centre and states, and 90:10 for northeastern and Himalayan states.
- Performance-linked funding from the second year based on state-level criteria.
- Governance includes a 16-member National Level Steering Committee and a Central Gramin Rozgar Guarantee Council.
- Increases guaranteed rural wage employment to 125 days annually.
- Mandates Viksit Gram Panchayat Plans using spatial technologies.
India's Rural Employment and Infrastructure Growth
The VB-G RAM G Act, 2025, is pivotal in aligning rural employment with India's broader economic and social objectives. By increasing employment days and linking them to infrastructure projects, the Act aims to boost rural development and resilience. This aligns with India's strategic goals of enhancing rural livelihoods and infrastructure, contributing to economic growth and poverty alleviation.
UPSC Relevance
- GS Paper 2: Governance, Welfare Schemes, and Policies.
- GS Paper 3: Economic Development, Inclusive Growth.
- Prelims: Focus on factual questions about funding models and governance structures.
- Mains: Analytical themes on rural employment, economic development, and governance reforms.
FAQ Section
- What is VB-G RAM G Act, 2025?
It is the new rural employment law that will replace MGNREGA and provide guaranteed wage employment along with rural livelihood and infrastructure creation. - What is the biggest change in funding under VB-G RAM G?
The Act replaces MGNREGA’s open-ended, demand-based funding with a normative allocation model based on objective criteria and performance indicators. - How will poorer states benefit under the new scheme?
The allocation formula gives the highest weight to GSDP distance, which helps poorer states receive a larger share of central funds. - What happens to existing MGNREGA job cards during the transition?
e-KYC-verified MGNREGA job cards will remain temporarily valid until new Gramin Rozgar Guarantee Cards are issued.
Detailed Coverage
- Shift to a Normative Allocation: Moves from MGNREGA’s open-ended funding to a ceiling based on a horizontal devolution formula.
- Prioritizing Poorer States: Allocation formula favors states with lower per capita income.
- Revised Cost-Sharing: Introduces a 60:40 cost-sharing ratio between Centre and states.
- Performance-Linked Funding: Central allocations contingent on state performance metrics.
- National Level Steering Committee: 16-member committee to oversee allocations and compliance.
- Central Gramin Rozgar Guarantee Council: Advises on implementation of the new law.
- Temporary Validity of Job Cards: Existing MGNREGA job cards remain valid until new cards are issued.
- Enhanced Employment Guarantee: Increases guaranteed rural employment from 100 to 125 days annually.
- 60-Day Agricultural Pause: States can implement a no-work period during peak seasons.
- Viksit Bharat National Rural Infrastructure Stack: Links employment generation with rural infrastructure development.
- Decentralised Planning: Mandates preparation of Gram Panchayat Plans using spatial technologies.
- FAQs: Addresses key questions about the Act and its implications.
- Replacement of MGNREGA: New law to take effect from July 2026.
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