The government is likely to introduce a Bill in the ongoing Winter session of Parliament amending the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), changing the name of the flagship rural employment scheme to “Pujya Bapu Gramin Rozgar Yojana”.
According to senior government functionaries, the amended Bill was cleared by the Union Cabinet in its meeting held on Friday (December 12, 2025). There was no official announcement on the proposal at the Cabinet briefing addressed by Union Minister Ashwini Vaishnaw. The original Bill passed by Parliament on August 25, 2005 was called “National Rural Employment Guarantee Act”. The suffix “Mahatma Gandhi” was added in 2009.
As per a written answer by the Minister of State for Rural Development Kamlesh Paswan on Friday (December 12, 2025) in Rajya Sabha, the average number of days of employment per household during the last five years comes to 50.35 days. Mr. Paswan also noted that the scheme is a “fallback option when no better employment opportunity is available”.
“Pujya Bapu Gramin Rozgar Yojana” What is VB–G RAM G?
Shri Shivraj Singh Chouhan introduces the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin): VB G RAM G (विकसित भारत–जी राम जी) Bill, 2025 in Lok Sabha today(16th December 2025)
The Bill guarantees 125 days of wage employment to rural households and focuses on Empowerment, Growth, Convergence and Saturation
‘Viksit Gram Panchayat Plans’ to be prepared by the Gram Panchayats on Saturation basis with convergence of schemes, using PM Gati Shakti
Integrated ‘Viksit Bharat National Rural Infrastructure Stack’ envisioned for rural public works Special focus on water security works, core rural infrastructure, livelihood related infrastructure, and special works to mitigate extreme weather events Provisions to facilitate availability of farm labour during peak agricultural seasons Robust transparency and accountability mechanisms such as weekly public disclosure systems and strengthened Social Audit Comprehensive governance ecosystem built on digital public infrastructure for efficient and high-integrity implementation
Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
The Mahatma Gandhi National Rural Employment Guarantee Scheme was launched on 02.02.2006. It guarantees 100 days of employment in a financial year to any rural household whose adult members volunteer to do unskilled manual work. Mahatma Gandhi National Rural Employment Guarantee Act is an important step towards the realization of the “right to work”. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) framed under the Act is the only anti-poverty programme which has legal backing.
The core objective of this scheme, as per the revised schedule-I of the MGNREG Act, are;
- Providing not less than one hundred days of unskilled manual work as a guaranteed employment in a financial year to every household in rural areas as per demand, resulting in creation of productive assets of prescribed quality and durability;
- Strengthening the livelihood resource base of the poor;
- Proactively ensuring social inclusion;
- Strengthening of Panchayat Raj institutions.
The Indian government announced major changes to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), proposing to replace it with the “Viksit Bharat – Guarantee for Rozgar and Ajeevika” (VB-G Ram G) Bill, increasing guaranteed work days from 100 to 125, introducing shared funding responsibilities for states, and allowing work pauses during peak farming seasons. These changes aim to overhaul the rights-based scheme into a more conditional program, sharing costs and potentially weakening the original guarantee, drawing criticism from opposition parties.
Key Changes Under the New VB-G Ram G Bill:
- Increased Work Days: The guaranteed employment days per rural household are raised from 100 to 125 days annually.
- Shared Funding: States will now share the wage bill (e.g., 60:40 Centre-State ratio), unlike MGNREGA where the Centre bore the entire cost.
- Seasonal Pause: A new provision allows for a 60-day pause in scheme work during peak agricultural seasons (sowing/harvesting) to ensure labor availability for farming.
- Name Change: The scheme is being rebranded, dropping Mahatma Gandhi’s name, which critics view as a political move to dilute the program’s essence.
Why is there a need to change MGNREGA now?
The need to change the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) stems from the government’s argument that the original 2005 framework is outdated for the current rural economy, coupled with persistent structural issues and a vision to transition to a more accountable, technology-driven system.
why shift from demand-based to normative funding?
The shift from demand-based to normative funding is typically driven by the need for greater financial predictability, fiscal discipline, and improved transparency and planning in public resource allocation.
The VB-G RAM G Bill 2025 (Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin)) aims to revamp India’s rural employment by replacing MGNREGA, offering 125 days of guaranteed work with enhanced digital tracking, Panchayat-led planning, and convergence with other schemes, promising higher incomes and asset creation; however, disadvantages cited include concerns over increased state financial burden, dilution of rights for disabled workers, potential for exclusion during peak agricultural seasons, and fears that increased technology and conditional funding might shift away from MGNREGA’s core demand-driven, rights-based framework.
| AdvantagesMore Work: Guarantees 125 days of employment, potentially increasing earnings by 25%.Structured Planning: Uses Viksit Gram Panchayat Plans and PM Gati Shakti for planned work, reducing last-minute scrambles.Digital Efficiency: Continues and enhances digital payments and biometric verification, aiming to prevent wage theft.Asset Creation: Focuses on building useful rural infrastructure (roads, water bodies) that benefits communities.Unemployment Allowance: Retains the provision for unemployment allowance if work isn’t provided, with legal backing. | Disadvantages & Concernsamanaged, conditional scheme, increasing state control. |
