Centre notifies Draft Rules under VB–G RAM G Act, seeks public feedback by June 20

The Central Government notified draft rules under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G), inviting pub...

What Happened

The Central Government notified draft rules under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G), inviting public objections and suggestions by June 20, 2026.
The draft rules establish that, for each financial year, the Centre will determine a "normative allocation" of funds for every state based on objective parameters specified in the rules — anchored to the 16th Finance Commission formula.
This marks a departure from the demand-driven, expenditure-reimbursement model of MGNREGA, where releases were triggered by states' actual wage payments rather than a pre-determined normative ceiling.
The rules also specify the transition mechanism from MGNREGA to VB-G RAM G, including provisions for existing works, pending wage payments, and the reissuance of smart job cards.
The 30-day public feedback window reflects the Ministry's adherence to pre-legislative consultation norms recommended by the Pre-Legislative Consultation Policy of 2014.

Static Topic Bridges

Subordinate Legislation and Rule-Making Powers

Parliament frequently delegates rule-making authority to the executive through enabling provisions in parent Acts. Such delegated legislation — called subordinate or secondary legislation — allows the executive to fill in operational details without returning to Parliament for each amendment.

Rules made under an Act derive their authority from the parent statute; they must be "laid before" Parliament (typically within 30 days of notification) under the Statutory Instruments Act provisions and each Act's specific laying requirement.
Section 23 of most Central Acts requires that rules be "laid on the table" of both Houses; Parliament may modify or annul them within the prescribed period.
Subordinate legislation cannot exceed the scope granted by the parent Act; courts may strike down ultra vires rules under Articles 13 and 226.
Draft rules (as opposed to final rules) are increasingly circulated for pre-publication comment — a practice institutionalised by the Ministry of Law's 2014 policy.

Connection to this news: The VB-G RAM G draft rules are subordinate legislation under the parent Act, 2025. The Centre's decision to invite public feedback before finalisation reflects the pre-legislative consultation norm — and gives states, civil society, and implementing agencies an opportunity to flag implementation gaps before the July 1, 2026 commencement.

Normative vs. Demand-Based Fiscal Transfers

India's intergovernmental transfer architecture distinguishes between formula-based (normative) transfers and demand-triggered reimbursements. The choice of mechanism has significant implications for state fiscal planning and programme predictability.

Under MGNREGA, the Centre reimbursed states for wages actually paid and materials procured — making transfers reactive to demand but exposing states to delayed reimbursements when the Centre's budget was constrained.
Normative allocation, by contrast, pre-assigns a state's share of the national outlay based on objective criteria (population, poverty ratio, backwardness indices, or Finance Commission parameters), enabling advance budget planning.
The 15th Finance Commission introduced performance-linked tied grants for local bodies alongside formula-based untied grants — a precedent now being applied to social-sector scheme allocations.
Article 275 of the Constitution allows Parliament to make grants to states "in need of assistance" — normative rules provide the framework for determining need.

Connection to this news: By prescribing that normative allocations will be determined via objective parameters (linked to the 16th FC formula), the draft rules shift VB-G RAM G from an open-ended entitlement-reimbursement model to a capped, formula-driven transfer — potentially improving Centre's fiscal predictability while requiring states to prioritise implementation within their normative ceiling.

Pre-Legislative Consultation Policy (2014)

The Ministry of Law and Justice introduced a Pre-Legislative Consultation Policy in 2014, recommending that all proposed legislation and subordinate legislation be placed in the public domain for a minimum of 30 days before introduction or notification, accompanied by a summary of the proposal and key stakeholder concerns.

Policy objective: To widen participation in law-making, reduce implementation resistance, and improve legislative quality.
Applies to both Bills and draft rules/regulations made under existing Acts.
Departments are required to publish drafts on their websites and the India Code portal; a summary of received comments and the government's response should ideally be published.
While the policy is not legally binding, non-compliance has been cited by courts and parliamentary committees in review proceedings.

Connection to this news: The 30-day public feedback window (June 20–21 deadline) for the VB-G RAM G draft rules is consistent with the 2014 policy — and is particularly significant given the scheme's scale: it will replace MGNREGA, which covered approximately 15 crore rural households, from July 1, 2026.

Transition Architecture: MGNREGA to VB-G RAM G

The legislative and administrative challenge of succeeding a large welfare programme involves continuity of entitlements, data migration, and grievance redressal for pending dues — all of which the transition provisions in the draft rules must address.

MGNREGA was enacted in 2005 and implemented from February 2006; it will have operated for approximately 20 years at repeal.
VB-G RAM G raises employment entitlement from 100 to 125 days; introduces Viksit Gram Panchayat Plans (VGPPs) as convergence-based local development plans replacing the earlier demand-driven household application model.
Existing MGNREGA job cards will be replaced by new smart job cards; beneficiary databases must be merged with the new scheme's digital infrastructure (linked to PM Gati Shakti and real-time dashboards).
Pending MGNREGA wage payments and works-in-progress as of June 30, 2026 will require explicit transition treatment in the final rules.
Social audits — mandatory at least twice yearly under VB-G RAM G — will serve as the key accountability mechanism for the transition period.

Connection to this news: The draft rules' transition provisions directly address the legal and operational continuity risk: any gap in coverage, delay in smart card issuance, or ambiguity in pending-dues settlement could expose rural households to a temporary welfare gap in July 2026.

Key Facts & Data

Full form: VB-G RAM G = Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin)
Parent Act: VB-G RAM G Act, 2025 — Presidential assent received December 2025
Commencement date: July 1, 2026
MGNREGA repeal date: July 1, 2026 (simultaneous with VB-G RAM G commencement)
Public feedback deadline: June 20–21, 2026
Allocation principle: "Central Government shall, for each financial year, determine the normative allocation of the funds, for every State, based on the objective parameters specified in these rules"
16th Finance Commission award period: 2026–27 to 2030–31 (Chair: Dr. Arvind Panagariya)
States' share of divisible pool: 41% (recommended by both 15th and 16th FCs)
Employment guarantee: 125 days per rural household per year (up from 100 days under MGNREGA)
MGNREGA operational life: ~20 years (February 2006 – June 2026)
NLSC: 16-member National Level Steering Committee; must include 5 state representatives