India's President Assents to Viksit Bharat-G Ram G Bill Replacing MGNREGA

The Hindu
The Hindu
5h ago
3 views
India's new rural employment law, VB-G Ram G Bill, replaces MGNREGA, increasing guaranteed workdays and emphasizing infrastructure and development outcomes.
India's President Assents to Viksit Bharat-G Ram G Bill Replacing MGNREGA
A What happened
India's President has approved the Viksit Bharat-G Ram G Bill, replacing the Mahatma Gandhi National Rural Employment Guarantee Act. The new legislation mandates 125 guaranteed workdays, up from 100 under MGNREGA, and restructures the scheme to prioritize four areas: water security, core rural infrastructure, livelihood infrastructure, and extreme weather mitigation. The budget of ₹1,51,282 crore is aimed at comprehensive village development. Provisions for unemployment allowance and wage delay penalties have been strengthened. The financing model maintains central funding predominance with a 60:40 ratio between Centre and States for most schemes, adjusting the former MGNREGA ratio of 90:10 for wages and administrative costs.
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Key insights

  • 1

    Shift from 'Works' to 'Outcomes': The new law refocuses rural employment from purely creating jobs (works) to achieving measurable improvements in infrastructure and resilience, signaling a strategic pivot to long-term rural development.

  • 2

    Increased Employment Guarantee: Raising guaranteed workdays to 125 reflects an effort to provide more consistent employment security in rural areas amid economic challenges and climate risks.

  • 3

    Financial Restructuring and Budget Scale: The ₹1.51 trillion budget and maintained 60:40 Centre-State funding model highlight a significant financial commitment and a standardized approach to rural support schemes.

Takeaways

The VB-G Ram G Bill represents a structural overhaul of rural employment policy in India, aiming to provide more work, strengthen welfare provisions, and link employment schemes to sustainable village development.

Topics

Business & Markets Economy World & Politics Policy & Regulation Governance Development

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