VB-G RAM G: when a policy shift meets rural realities

What Happened

The Viksit Bharat - Guarantee for Rozgar Aajeevika Mission (Grameen), or VB-G RAM G, passed by Parliament on December 18, 2025, and approved by the President on December 21, has begun replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) that was operational since 2005.
The government maintains VB-G RAM G is an improved version with increased guaranteed work days (125 days, up from 100) and expanded scope, but critics argue it fundamentally dilutes the legal right to demand employment.
Rural job card holders report that while the scheme promises more on paper, the transition has created uncertainty about assured and adequate work, with the new Act's demand-driven character being replaced by a normative-funded mission approach.
A 6-month transition period allows parallel operation of MGNREGA and VB-G RAM G, with Rs 30,000 crore allocated for MGNREGA during this phase.
The central share for VB-G RAM G is pegged at Rs 95,692.31 crore for FY 2026-27, making it one of the largest rural welfare allocations.

Static Topic Bridges

MGNREGA: Two Decades of Rural Employment Guarantee

Enacted in 2005 and rolled out from February 2, 2006, starting with 200 districts and eventually covering all rural districts by April 2008.
Legal entitlement: Every rural household had the right to demand work; if not provided within 15 days, an unemployment allowance was payable.
The Act mandated that at least 60% of expenditure be on wages and at most 40% on material, ensuring maximum employment generation.
One-third of beneficiaries had to be women -- actual female participation consistently exceeded 50%.
At its peak, MGNREGA provided employment to over 7.8 crore households annually (FY 2020-21).
Key criticism: Low wage rates (often below state minimum wages), delayed payments, use of Aadhaar-based payment failures, and alleged ghost beneficiaries.
MGNREGA was designed as an automatic stabilizer -- demand for work rose during droughts and economic downturns, providing a counter-cyclical safety net.

Connection to this news: The shift from MGNREGA to VB-G RAM G represents a fundamental change from a demand-driven legal entitlement to a normative-funded mission. Under MGNREGA, the government was constitutionally bound to provide work on demand. Under VB-G RAM G, the scheme will operate only within the budget allocated by the Centre and in areas notified by it, potentially limiting the universal right to employment.

Demand-driven (MGNREGA model): The government must provide funds to meet whatever demand arises. The budget is open-ended -- if more households demand work, more funds must be released. This creates a legal entitlement enforceable in court.
Normative-funded (VB-G RAM G model): The programme operates within a predetermined budget ceiling. Work is provided subject to fund availability and government notification. This gives fiscal control but removes the guarantee of employment on demand.
The National Food Security Act, 2013 (PDS) is another example of a demand-driven entitlement -- it guarantees food grains to approximately 81.35 crore people regardless of budget constraints.
PM-KISAN (Rs 6,000/year to farmers) is a normative-funded scheme -- the benefit is fixed and the budget is capped.
The Directive Principles of State Policy (Article 41) direct the state to provide the right to work within its economic capacity -- a normative approach by constitutional design.

Connection to this news: Critics of VB-G RAM G argue that by moving from demand-driven to normative funding, the government has effectively downgraded rural employment from a justiciable legal right to a scheme subject to annual budgetary allocations. The government counters that the higher allocation (Rs 95,692 crore) and increased work days (125 days) demonstrate commitment, but the structural change means employment is no longer guaranteed on demand.

Rural Distress and Agrarian Economy

Agriculture employs approximately 42% of India's workforce but contributes only about 18% to GDP, reflecting significant disguised unemployment.
Average farm size in India has declined to 0.73 hectares (Agriculture Census 2021-22), with 86.4% of holdings being small and marginal.
Rural-urban wage gap persists: The average daily agricultural wage was Rs 358 in 2024, compared to Rs 514 for non-agricultural rural work.
Climate change is increasing the frequency of droughts and floods, making rural employment programmes more critical as safety nets during weather shocks.
MGNREGA served as a de facto drought relief mechanism -- work demand spiked 30-40% in drought years.
VB-G RAM G introduces a mandatory 60-day seasonal pause during sowing and harvesting seasons, intended to prevent rural labour shortages but criticized for removing work precisely when many landless labourers need income.

Connection to this news: The rural realities described in the ground reporting -- job card holders wanting assured and adequate work -- reflect the structural vulnerability of India's rural workforce. With 86.4% of holdings being small and marginal, and agriculture increasingly unviable as a sole livelihood, the guarantee of employment on demand served as an essential safety net that the new normative model may not fully replicate.

Key Facts & Data

MGNREGA: Enacted 2005, covered all rural districts by 2008, guaranteed 100 days of work per household
VB-G RAM G: Passed December 18, 2025; increases guaranteed days to 125; replaces demand-driven with normative funding
Budget allocation: Rs 95,692.31 crore (VB-G RAM G, FY 2026-27) + Rs 30,000 crore (MGNREGA transition)
Funding ratio: 60:40 (Centre:State) for general states; 90:10 for NE and Himalayan states
Seasonal pause: Up to 60 days during sowing and harvesting seasons under VB-G RAM G
MGNREGA peak coverage: 7.8 crore households (FY 2020-21)
Female participation: Consistently above 50% under MGNREGA (mandate was 33%)
Average farm size: 0.73 hectares; 86.4% of holdings are small and marginal (Agriculture Census 2021-22)