Published: 14 December 2025PRS/The HinduGovernance
VB-G RAM G Bill PRS Analysis: MGNREGA Replaced with 125-Day Guarantee
The PRS Legislative Research on December 15, 2025 released a detailed analysis of the Viksit Bharat Gramin Rozgar aur Awaas Maha Abhiyan Guarantee (VB-G RAM G) Bill, 2025, which proposes replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with an enhanced rural employment framework. The Bill was introduced in the Lok Sabha on December 16, 2025.
The VB-G RAM G Bill increases the employment guarantee from 100 days under MGNREGA to 125 days per household per year. A key structural change is the modification of the Centre-State cost sharing ratio: while MGNREGA was funded almost entirely by the Centre, the new Bill mandates a 60:40 split, with 60% borne by the Centre and 40% by the State governments. Critics argue this shifts a significant burden to fiscally stressed states.
The Bill introduces AI-based fraud detection mechanisms to curb ghost beneficiaries and wage theft, which have been persistent problems in MGNREGA implementation. All payments are linked to Aadhaar to ensure direct benefit transfer. The PRS analysis also flags a significant structural concern: the new law removes the demand-driven nature of MGNREGA. Under MGNREGA, any eligible worker could demand work and the government was legally obligated to provide it within 15 days or pay an unemployment allowance. The VB-G RAM G Bill makes employment provision subject to state government discretion and planning, potentially weakening the rights-based character of the scheme.
Rajasthan has historically recorded the highest MGNREGA employment generation in the country, making this policy shift particularly significant for the state. Thousands of rural households in arid and semi-arid districts such as Barmer, Jaisalmer, Nagaur, and Churu depend on MGNREGA wages as their primary source of income during lean agricultural seasons.
0Mains angle
Q: Discuss the structural changes proposed by the VB-G RAM G Bill 2025 over MGNREGA as analysed by PRS, focusing on the cost-sharing shift, demand-driven dilution and implications for Rajasthan.
Answer (50 words):
PRS analysis of the VB-G RAM G Bill 2025 finds the rural employment guarantee raised from 100 to 125 days. A 60:40 Centre-State cost-sharing replaces full Central funding, burdening fiscally weaker states. AI-based fraud detection and Aadhaar-linked payments tighten delivery, while removal of MGNREGA's demand-driven provision risks weakening Rajasthan's rights-based employment access.
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Frequently asked questions
What is the VB-G RAM G Bill 2025?
The Viksit Bharat Gramin Rozgar aur Awaas Maha Abhiyan Guarantee (VB-G RAM G) Bill, 2025, proposes replacing MGNREGA with an enhanced rural employment scheme offering 125 days of guaranteed employment per household per year.
What is the new Centre-State cost sharing ratio under VB-G RAM G?
The Bill mandates a 60:40 Centre-State cost sharing ratio, with 60% borne by the Centre and 40% by states, unlike MGNREGA which was almost entirely centrally funded.
How does VB-G RAM G differ from MGNREGA in terms of workers' rights?
MGNREGA was demand-driven — workers had a legal right to demand work and receive unemployment allowance if not provided within 15 days. VB-G RAM G removes this right and makes employment provision subject to state government planning and discretion.
Why is this Bill particularly important for Rajasthan?
Rajasthan has historically recorded the highest MGNREGA employment in India. Districts like Barmer, Jaisalmer, Nagaur, and Churu depend heavily on MGNREGA wages during lean agricultural seasons.
What technology-based safeguards does the VB-G RAM G Bill introduce?
The Bill introduces AI-based fraud detection to curb ghost beneficiaries and wage theft, and mandates Aadhaar-linked payments for direct benefit transfer.