There has been much hue and cry over the VB-G RAM G Bill, or Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act 2025 that replaced MGNREGA by increasing guaranteed workdays from 100 to 125 while introducing funding caps, state cost-sharing, and tech integration. It shifts from a fully demand-driven, Centre-funded model to a supply-driven, capped-budget scheme aligned with Viksit Bharat 2047 goals. This overhaul aims to boost rural infrastructure but raises concerns over fiscal burdens on states.
If we examine the bill, we will find that there is nothing of much concern. The bill shifts the burden of funding the scheme from entirely the Centre to joint responsibility of the Centre and the states.Earlier, since the Centre would have the full financial responsibility, states used the money to launch freebies or would siphon off the money. The 60:40 Centre-state split and ₹95,000 crore cap will prevent the wastage of resources and will ensure that states remain fiscally prudent.
Now that the scheme has been extended from 100 days to 125 days of work, all beneficiaries will have almost an extra month of work annually. The government is ensuring that all the beneficiaries receive the money directly in their bank accounts. In the past, the money would be gobbled up by the panchayats, promoters, contractors and brokers, who would extract their pound of flesh from the beneficiaries, who would get a measly sum.
It is true that the interests of contractors, panchayats, local MPs, and MLAs of all parties are affected because they can no longer deprive the beneficiaries. Let’s not forget that earlier, the rural elites used to loot funds from the beneficiaries and extort a portion of the resources. They used to assert their dominance over the beneficiaries as the latter were always dependent on them for their daily needs.
Union Minister Shivraj Chouhan said under the new scheme, gram panchayats will prepare development plans, and villagers will decide the works to be undertaken. Also works would be suspended in the farming seasons. Work will also be allocated based on the supply of labourers from a particular panchayat area.
Areas having lack of water security and rural infrastructure are to be prioritised. Biometric authentication, GPS monitoring, AI audits, digital ecosystem need to be incorporated. Also wage payments will take place in 15 days. Overall, the bill seeks to achieve transparency, accountability and trust in the government.
All the views and opinions are those of the author.
About the Author
Sauro Dasgupta is currently pursuing a PhD in Political Science at Kalyani University.
