India’s flagship rural employment programme is set for a major transformation as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) undergoes a comprehensive overhaul to meet the needs of a changing economy. Under the VB-G RaM G Bill, 2025, the scheme will be renamed the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), marking what the government describes as a bold step toward empowering rural India.
The Centre has rolled out a wide-ranging package of legal and administrative reforms aimed at improving transparency, eliminating corruption and ensuring that benefits reach only genuine workers. Officials say the changes are designed to counter misinformation and strengthen public trust in the programme.
One of the most significant reforms is the increase in guaranteed annual employment from 100 to 125 days, offering greater income security to millions of rural households. The government has rejected claims that the new framework weakens the demand-driven nature of the scheme, calling such criticism misleading.
To improve efficiency and financial discipline, the Bill introduces an annual state allocation system, enabling states to plan employment generation based on available funds while preventing fund diversion and misuse.
Under the new law, 60 per cent of the total cost will be borne by the Centre, with states contributing the remaining 40 per cent. The government says this shared funding model will make states more accountable and reflects the spirit of cooperative federalism, encouraging greater ownership at the state level.
The Bill places strong emphasis on digital reforms, including geo-tagging and real-time photo uploads, to eliminate “ghost workers” and ensure that every rupee reaches the intended beneficiary. According to the Centre, enhanced transparency will ultimately benefit workers and close loopholes that enabled irregularities in the past.
By linking the scheme with the PM GatiShakti digital grid, the focus will shift toward creating durable, high-quality infrastructure assets in rural areas. The government says this approach will replace repetitive manual tasks with projects that improve connectivity, support national infrastructure goals and stimulate local economies.
Describing the VB-G RaM G Bill 2025 as a landmark reform, the Centre said opposition driven by political considerations risks slowing rural progress. With corruption curbed and efficiency enhanced, the revamped programme is expected to deliver more jobs, better livelihoods and greater self-reliance for rural India, strengthening the nation’s journey toward a Viksit Bharat.
