Union government replaces MGNREGA with VB-G RAM G Bill, altering rural employment rights

The Hindu
The Hindu
1h ago
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MGNREGA has been replaced by a budget-driven VB-G RAM G Bill, ending guaranteed rural employment. States now share funding responsibility, prompting criticism and opposition protests.
Union government replaces MGNREGA with VB-G RAM G Bill, altering rural employment rights
A What happened
In December 2025, Parliament approved the VB-G RAM G Bill, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This new law changes a rights-based scheme—which guaranteed at least 100 days of minimum-wage work to rural households—into a budget-driven program where government funding is capped and states must share costs. The bill removed Mahatma Gandhi's name from the scheme, prompting opposition protests and accusations of increasing financial burdens on states. Senior Supreme Court lawyer Prashant Bhushan condemned the shift as virtually ending MGNREGA, previously weakened by restrictions at the state level. He also warned that concurrent legal measures are curtailing civil liberties and freedom of speech.
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Key insights

  • 1

    Shift from Rights-Based to Budget-Driven Welfare: Replacing MGNREGA with the VB-G RAM G Bill moves rural employment from a guaranteed right to a conditional program dependent on government budget allocations.

  • 2

    Increased State Financial Responsibility: By making states partly responsible for funding, the VB-G RAM G Bill introduces fiscal pressures that could lead to uneven rural support across states, depending on their financial capacity and political priorities.

  • 3

    Erosion of Rural Employment Guarantee as a Political and Legal Trend: This legislative change reflects a broader pattern of the government reducing entitlement-based social programs and imposing constraints that may weaken social safety nets and civil rights protections.

Takeaways

The replacement of MGNREGA with the VB-G RAM G Bill marks a significant policy shift, reducing guaranteed rural employment rights and sharing financial burdens with states. This move may reshape rural welfare dynamics and reflects wider government trends affecting social programs and civil liberties.

Topics

Business & Markets Economy World & Politics Policy & Regulation Governance Human Rights