Why in News The Centre notified the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, abbreviated as VB-GRAMG, on May 11, 2026. The Act, passed by Parliament on December 18-19, 2025, will come into force on July 1, 2026, replacing the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA) from the same date.
Background: From MGNREGA to VB-GRAMG
The MGNREGA, 2005 has been India’s largest rights-based social protection law – guaranteeing 100 days of unskilled manual work per rural household per year, on demand. Over its two-decade life it has:
- Generated over 3,000 crore person-days of employment
- Built rural assets (water harvesting, roads, plantations) worth ~Rs 4 lakh crore
- Acted as a counter-cyclical safety net during COVID-19, when person-days briefly crossed 390 crore (2020-21)
It has also faced criticism: payment delays, wage stagnation below state minimum wages, leakages, and political diversion. The Centre framed the VB-GRAMG as a “next-generation” guarantee built on MGNREGA’s spine.
Key Comparison: MGNREGA vs VB-GRAMG
| Parameter | MGNREGA, 2005 | VB-GRAMG, 2025 |
|---|---|---|
| Days guaranteed | 100 per household | 125 per household |
| Cost share (general) | Wage 100% Centre; material 75:25; admin shared | 60:40 Centre:State |
| NE / Himalayan states | Same general formula | Higher Centre share |
| Union Territories | Centre-funded | 100% Centre-funded |
| Work shelf | Gram Sabha approved | Viksit Gram Panchayat Plan |
| Wage rate | Schedule II notified by MoRD | Notified under new Act; linked to CPI-AL |
| Seasonal pause | Not statutory | Up to 60 days (sowing/harvest) permitted |
| Tech compliance | Aadhaar-linked, NMMS, ABPS | AI fraud detection, GPS monitoring, Aadhaar-linked payments |
| Social audit | Annual, by Social Audit Units | Biannual, mandated |
| Budget 2026-27 | – | Rs 95,692 crore |
The 125-Day Guarantee: Promise and Pushback
The headline increase from 100 to 125 days is the Government’s most prominent claim. Critics, however, argue:
- The Rs 95,692 crore allocation – only marginally higher than recent MGNREGA budgets (~Rs 86,000 crore in 2024-25 RE) – is insufficient to fund a 25% expansion of guaranteed days at scale.
- If demand cannot be met within allocation, the legal guarantee weakens into a budget-bounded entitlement – a structural dilution.
- A 60:40 Centre-State share shifts a larger fiscal burden to states, many of which already underfund MGNREGA top-ups.
Implementation Architecture
Planning
- Works selected from the Viksit Gram Panchayat Plan (VGPP) – an integrated village development plan replacing the existing GPDP
- Gram Sabha approval retained
- Convergence with PM-KUSUM, Jal Jeevan Mission, PMAY-G, and watershed schemes
Wages and Payments
- Aadhaar-Based Payment System (ABPS) retained as default
- Direct Benefit Transfer (DBT) to job-card holder’s bank account
- Statutory grievance redress via Block Development Officer with appeal to District Programme Coordinator
Technology
- AI fraud detection of muster-roll anomalies, ghost workers, work overlaps
- GPS monitoring of work sites
- NMMS-style real-time attendance retained
- Mandatory biannual social audits by independent State Social Audit Units
Constitutional and Policy Context
| Provision | Description |
|---|---|
| Article 41 (DPSP) | State to secure right to work, education, public assistance |
| Article 21 | Right to livelihood read as part of life (Olga Tellis, 1985) |
| Schedule 7, List III | “Social security and social insurance” – concurrent subject |
| SDG 1 and 8 | No poverty; decent work |
The Standing Committee on Rural Development had recommended:
- Universalisation rather than household cap
- Linking wages to state minimum wages or DA-indexed formula
- Climate-resilient asset focus – soil, water, biodiversity
VB-GRAMG addresses (3) substantially; (1) and (2) remain partial.
Concerns Flagged by Civil Society and Opposition
- Legal vs administrative guarantee. Without adequate funding, “125 days” risks becoming aspirational.
- Burden on states. A 60:40 share is a sharp shift from MGNREGA’s 100% wage funding by Centre.
- Gram Sabha autonomy narrowed by VGPP standardisation.
- Wage rate stagnation. No automatic indexation to state minimum wages – a long-standing demand.
- Exclusion errors. Aadhaar-ABPS issues have already caused job-card deletions in MGNREGA’s last phase.
UPSC Relevance
GS Paper 2 – Governance, Social Sector
- Welfare laws and rights-based legislation
- Centre-State fiscal relations
- Panchayati Raj and gram sabha planning (Article 243G; Schedule 11)
GS Paper 3 – Economy
- Rural employment, agricultural wages
- Public expenditure and fiscal federalism
- Counter-cyclical fiscal policy
Mains Angles
- “A rights-based law without adequate budgetary backing is a legal fiction.” Critically examine in the context of VB-GRAMG.
- Evaluate the role of MGNREGA over two decades. How should the VB-GRAMG build on its strengths?
- Discuss the Centre-State fiscal implications of the 60:40 cost-share formula in social welfare programmes.
Facts Corner – Knowledgepedia
VB-GRAMG Act, 2025:
- Full title: Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025
- Passed by Parliament: December 18-19, 2025
- Notified: May 11, 2026
- In force from: July 1, 2026
- Repeals MGNREGA from July 1, 2026
- Guarantee: 125 days per rural household per year
- Centre-State share: 60:40 (higher for NE/Himalayan; 100% for UTs)
- Budget 2026-27 allocation: Rs 95,692 crore
- Seasonal pause: up to 60 days
MGNREGA, 2005:
- Enacted September 7, 2005; effective February 2, 2006
- 100 days; wage 100% Centre, material 75:25
- Schedule II governs wage notification
- Renamed MGNREGA from NREGA in October 2009
- 3,000+ crore person-days generated lifetime
Constitutional: Article 41 DPSP; Article 21 (Olga Tellis, 1985 – right to livelihood). Article 243G + Schedule 11: panchayat functions.
Convergence schemes: PM-KUSUM, Jal Jeevan Mission, PMAY-G, IWMP.
