VB—G RAM G Bill gets President nod; employment guarantee extended to 125 days

The presidential assent to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB—G RAM G) Bill, 2025, marks a pivotal moment in India's rural employment policy. This new legislation is set to replace the long-standing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), signifying a significant strategic shift in the government's approach to rural livelihood security and poverty alleviation. The immediate and most notable change is the extension of the guaranteed employment from 100 days to 125 days, a move designed to provide greater income stability to rural households.

The genesis of such employment guarantee schemes in India can be traced back to the Directive Principles of State Policy (DPSP) in the Indian Constitution, particularly Article 41, which mandates the State to make effective provision for securing the right to work, to education, and to public assistance in cases of unemployment, old age, sickness, and disablement. Building on this constitutional spirit, MGNREGA was enacted in 2005 as a rights-based legislation, guaranteeing 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. It was hailed globally as one of the largest social security programmes, aiming to enhance livelihood security, reduce distress migration, and create durable assets in rural areas. Over the years, MGNREGA played a crucial role, especially during economic downturns and crises like the COVID-19 pandemic, by providing a safety net to millions.

However, MGNREGA also faced its share of challenges. Criticisms often revolved around issues such as delayed wage payments, inadequate funding, poor quality of assets created, administrative inefficiencies, and instances of corruption. There were also debates about its effectiveness in truly transforming rural economies beyond providing basic subsistence. The government's vision of 'Viksit Bharat' (Developed India) by 2047 likely necessitated a re-evaluation of existing policies to align them with broader developmental goals, emphasizing not just employment but also sustainable livelihoods and integrated rural development.

With the VB—G RAM G Bill, 2025, the government aims to address some of these concerns while also enhancing the scope and impact of the employment guarantee. The extension to 125 days is a direct response to the demand for more workdays, particularly in regions prone to agricultural distress or with limited alternative employment opportunities. This increase is expected to inject more purchasing power into rural economies, potentially boosting local demand and contributing to overall economic growth. The 'Viksit Bharat' prefix suggests a focus on more holistic development, possibly integrating skill development, asset creation with higher quality, and better convergence with other welfare schemes.

Key stakeholders in this new policy will primarily include the Ministry of Rural Development, which is the nodal ministry for implementation, along with state governments that are responsible for execution, fund utilization, and monitoring. Panchayati Raj Institutions (PRIs) will continue to play a critical role in identifying projects, managing local works, and ensuring transparency at the grassroots level, as mandated by the 73rd Constitutional Amendment Act, 1992, which empowered PRIs. Most importantly, the rural workers themselves are the primary beneficiaries, whose lives and livelihoods are directly impacted. Civil society organizations and academia will also be crucial in monitoring the scheme's effectiveness and advocating for improvements.

The significance of VB—G RAM G for India is multifaceted. Economically, the increased guaranteed workdays and potentially higher wages could lead to a substantial uplift in rural incomes, reducing poverty and improving living standards. Socially, it could further empower marginalized communities, including women and Scheduled Castes/Tribes, who have historically been significant beneficiaries of such schemes. Women, in particular, have shown high participation rates in MGNREGA, and this new scheme could further enhance their economic independence and decision-making power. Politically, a successful implementation could bolster the government's commitment to inclusive growth and social welfare.

Historically, employment guarantee schemes have evolved from ad-hoc relief measures to rights-based entitlements. The shift from MGNREGA to VB—G RAM G reflects this ongoing evolution, aiming for greater efficiency, broader impact, and alignment with modern developmental paradigms. The future implications are substantial. If effectively implemented, VB—G RAM G could significantly reduce distress migration from rural to urban areas, improve the quality of rural infrastructure, and foster a more resilient rural economy. However, challenges such as ensuring timely wage payments, preventing leakages, maintaining the quality of assets, and ensuring adequate budgetary allocation will remain critical. The success of VB—G RAM G will depend on robust administrative mechanisms, transparent financial management, and strong political will to ensure its benefits reach the most vulnerable sections of society, truly contributing to the 'Viksit Bharat' vision.