In a major step taken by the Government of India, the ‘Viksit Bharat-Employment and Livelihood Mission (Rural) [VB-G RAM G] Act, 2025’ has come into effect across rural India from today onwards. This Act guarantees 125 days of wage employment in every financial year. The Ministry of Rural Development stated that this Act will empower rural India. According to reports, a provision of ₹95,692 crore has been made in the current financial year to implement this new framework nationwide.
What is VB-G RAM G?
The VB-G RAM G Act will replace the two-decade-old ‘Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005’. The objective of this new Act is to increase the statutory employment guarantee from 100 days to 125 days per financial year. This enhanced employment guarantee aims to accelerate the pace of rural development, provide better income security, and empower rural households.
The Act emphasizes the timely, transparent, and accountable payment of wages. The new Act also includes a provision for the payment of an unemployment allowance if work is not provided within the stipulated timeframe. The ‘Viksit Bharat-GRAM G Act’ is a comprehensive legal framework designed to align rural employment generation with the national vision of a ‘Viksit Bharat’ (Developed India) by 2047.
A Historic Day
Union Minister Shivraj Singh Chouhan described the implementation of the ‘Viksit Bharat – Guarantee for Employment and Livelihood Mission (Rural) Act, 2025’ (VB-G RAM G) on Wednesday as a “historic day.” Starting today, this new rural employment and development framework has replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, across the country.
Union Minister Chouhan stated that this new framework represents a significant improvement over the previous employment guarantee program. Speaking about the launch and expansion of the employment guarantee under the new scheme, he said, “Today is a historic day. Yesterday marked the conclusion of MGNREGA. From today, a scheme superior to MGNREGA has come into effect, featuring a provision for 125 days of employment instead of 100: VB-G RAM G.”
Enhanced employment guarantee to strengthen rural livelihoods
Discussing its implementation, Union Minister for Rural Development Shivraj Singh Chouhan stated that no eligible rural worker should be deprived of work, even for a single day. Mr. Chouhan noted that the government, in collaboration with states and Union Territories, has completed all administrative, financial, and technical preparations to ensure a smooth transition to the new framework.
The Minister added that adequate financial resources have been made available, implementation systems are fully ready, and ongoing works will continue without interruption. He remarked that the enhanced guarantee of 125 days of wage employment would strengthen rural livelihoods, create durable community assets, and accelerate the vision of a ‘Viksit Bharat’ (Developed India).
Budgetary provisions made by all states
Emphasizing financial allocation and decentralized planning through Gram Panchayats, he further stated, “I am pleased to inform you that all states have made budgetary provisions for this, and the Central Government has allocated over ₹95,600 crore for VB-G RAM G this year. Gram Panchayats will formulate effective plans; the brothers and sisters of the village will collectively decide which works are to be undertaken in their village. Developed villages will be built to pave the way for a developed India.”
MGNREGA repealed with the implementation of the new Act
The Ministry of Rural Development had previously confirmed the nationwide implementation of the new law through a notification. With its implementation, MGNREGA has been repealed. The government has described this as a structural shift towards “integrated, future-ready, and productivity-oriented rural transformation,” aligned with the vision of ‘Viksit Bharat @2047’. The Centre has allocated over ₹95,600 crore for this scheme in the current financial year.
The release states, “With the implementation of the VB-GRAM Act, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, stands repealed from the same date. This marks a historic shift in India’s rural development framework and heralds a new era of integrated, future-ready, and productivity-oriented rural transformation, in alignment with the national vision of ‘Viksit Bharat @2047’.” The ‘Viksit Bharat-Employment and Livelihood Mission (Rural) Guarantee Act’ was passed during the Winter Session of Parliament in 2025. This Act provides a guarantee of 125 days of employment, replacing the earlier 100-day guarantee. However, the opposition has criticized the legislation for removing Mahatma Gandhi’s name from the scheme and altering the 60:40 fund-sharing ratio between the Centre and the states.
