Centre releases draft rules for VB‑G RAM G Act 2025 – Transition from MGNREGA to new rural employment scheme

<h3>Overview</h3> <p>On <strong>23 May 2026</strong>, the Union Government placed draft rules of the <span class="key-term" data-definition="Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 — A central legislation that replaces MGNREGA with a new rural employment guarantee, raising entitlement to 125 days per household (GS2: Polity, GS3: Economy)">VB‑G RAM G</span> Act in the public domain for consultation. The rules are framed under Section 33 of the Act and aim to create a uniform administrative and financial framework for the scheme across all States and Union Territories from <strong>1 July 2026</strong>.</p> <h3>Key Developments</h3> <ul> <li>Draft rules cover transitional provisions, the <span class="key-term" data-definition="National Level Steering Committee — top-level body set up under the Act to oversee policy implementation across the country (GS2: Polity)">National Level Steering Committee</span>, the Central Gramin Rozgar Guarantee Council, grievance redressal, wage payment, and excess‑expenditure handling.</li> <li>The transition framework outlines how the existing <span class="key-term" data-definition="Mahatma Gandhi National Rural Employment Guarantee Act — flagship rural employment program guaranteeing 100 days of wage work per household (GS2: Polity, GS3: Economy)">MGNREGA</span> will be phased out, ensuring continuity of work, settlement of liabilities, and validity of <span class="key-term" data-definition="e‑KYC — electronic Know Your Customer verification used to authenticate job cards digitally, enhancing transparency (GS3: Economy)">e‑KYC</span>-verified job cards.</li> <li>States have begun allocating funds; <strong>25 States</strong> have already earmarked resources for the new scheme.</li> <li>Opposition parties and civil‑society groups warn that the <span class="key-term" data-definition="60:40 Centre-State funding model — financial arrangement where the Centre contributes 60% of scheme funds and States contribute 40%, affecting fiscal federalism (GS3: Economy, GS2: Polity)">60:40 Centre-State funding model</span> may strain poorer States and reduce the rights‑based nature of the guarantee.</li> </ul> <h3>Important Facts</h3> <p>The <span class="key-term" data-definition="Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 — A central legislation that replaces MGNREGA with a new rural employment guarantee, raising entitlement to 125 days per household (GS2: Polity, GS3: Economy)">VB‑G RAM G</span> Act increases the guaranteed days of wage employment from <strong>100 to 125 days per rural household per year</strong>. It also shifts focus to village‑level planning, creation of rural assets, and a digital monitoring system. The draft rules specify that the transition period will continue until each State formally notifies the new scheme, safeguarding workers' rights and pending payments.</p> <h3>UPSC Relevance</h3> <p>Understanding this policy shift is crucial for GS 2 (Polity) as it reflects the Centre’s use of legislation to restructure welfare programmes and the role of inter‑governmental bodies like the <span class="key-term" data-definition="National Level Steering Committee — top-level body set up under the Act to oversee policy implementation across the country (GS2: Polity)">National Level Steering Committee</span>. For GS 3 (Economy), the change in funding pattern (<span class="key-term" data-definition="60:40 Centre-State funding model — financial arrangement where the Centre contributes 60% of scheme funds and States contribute 40%, affecting fiscal federalism (GS3: Economy, GS2: Polity)">60:40 model</span>) and the increased wage guarantee affect fiscal allocations, rural employment, and poverty alleviation. The digital components (<span class="key-term" data-definition="e‑KYC — electronic Know Your Customer verification used to authenticate job cards digitally, enhancing transparency (GS3: Economy)">e‑KYC</span>) illustrate the push for technology‑enabled governance.</p> <h3>Way Forward</h3> <p>Stakeholders are invited to submit feedback on the draft rules before the consultation closes. The Ministry of Rural Development will incorporate constructive inputs, finalize the rules, and issue a notification for implementation. Monitoring mechanisms, grievance redressal cells, and financial audits will be set up to ensure transparency. Aspirants should track the evolution of the scheme, especially the impact on State finances and the effectiveness of the digital monitoring system, as these will be examined in future UPSC questions on welfare reforms and fiscal federalism.</p>