India Replaces MGNREGA with VB-G RAM G Bill
Analysis based on 44 articles · First reported Dec 15, 2025 · Last updated Dec 19, 2025
The passage of the VB-G RAM G Bill, replacing MGNREGA, is expected to negatively impact the rural economy in India by potentially reducing employment guarantees and shifting financial burdens to state governments. This could lead to decreased rural purchasing power and increased social instability, which are generally viewed negatively by financial markets.
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, has been passed by the Indian Parliament, replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This new legislation, introduced by Union Minister Shivraj Singh Chouhan, aims to provide 125 days of wage employment to rural households, an increase from MGNREGA's 100 days, and establish a modern statutory framework for 'Viksit Bharat 2047'. However, it has faced strong opposition from parties like the India — Indian National Congress. Leaders such as Rahul Gandhi and Priyanka Gandhi have criticized the bill, alleging that the Narendra Modi government is destroying the spirit of MGNREGA, weakening the rights-based employment guarantee, and centralizing power. They argue that the new bill, with its 60:40 Centre-state funding model for most states (90:10 for Northeastern and Himalayan states), will lead to the collapse of the scheme as state governments may not be able to bear the increased financial burden. The removal of Mahatma Gandhi's name from the scheme has also drawn criticism, with Manish Tewari and Shashi Tharoor calling it an insult to his ideals. The opposition vows to fight for the repeal of this law, which they believe will harm the rural poor and undermine local governance.
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