India Passes VB-G RAM G Bill
Analysis based on 29 articles · First reported Dec 16, 2025 · Last updated Dec 19, 2025
The passage of the VB-G RAM G Bill and the controversy surrounding the removal of Mahatma Gandhi's name from the MGNREGA scheme could lead to increased political instability and protests, potentially affecting investor confidence in India's policy-making environment. The shift of financial burden to states, as highlighted by the India — Indian National Congress, might strain state budgets, impacting local economic development and potentially leading to credit rating concerns for some states.
The Indian Parliament has passed the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G Bill), which replaces the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This new legislation aims to provide 125 days of wage employment and create rural infrastructure. The bill's passage has ignited significant political controversy, primarily due to the removal of Mahatma Gandhi's name from the scheme. Opposition parties, including the India — Indian National Congress, have strongly criticized the move, calling it a 'retrograde step' and an 'assault on the spirit' of the rural employment program. They have also accused Prime Minister Narendra Modi of 'acute acronym-itis' and raised concerns about the financial burden the new scheme places on states. In response, India — West Bengal Chief Minister Mamata Banerjee announced that her state's rural job guarantee scheme, Karmashree, would be renamed after Mahatma Gandhi to uphold respect for national icons. Opposition leaders staged an overnight dharna in Parliament, protesting the bill's passage and accusing the government of undermining the livelihoods of rural workers and disrespecting national heritage.
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