The BJP-led government has repealed the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, and in its place, has pushed through Parliament a new Bill titled Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Grameen). The government claims that this new law -- VB–G RAM (G) -- is part of its vision of Viksit Bharat.

The objectives and reasons for this Bill include increasing the existing 100 days of employment per adult per year to 125 days; banning employment under the pretext of agricultural seasons for 60 days so that agricultural labour remains available to farmers; reducing the Centre’s share in employment expenditure from 90% to 60%; increasing the States’ share from 10% to 40%; and enforcing complete reliance on technology.

To understand the new law’s implications, it is necessary to first recall the basic foundations of MGNREGA. It guarantees at least 100 days of employment per year to every adult in rural areas as a legal right. Every person who demands work must be provided employment without any budgetary ceiling. This scheme is demand-driven, not budget-driven. The number of workdays cannot be restricted based on budget availability. It is the only law in the country without budgetary conditionalities. Under this Act, 90% of the expenditure is borne by the central government and 10% by the states. If employment is not provided within 15 days of demand, an unemployment allowance must be paid. The works undertaken under this Act prioritised rural roads to agricultural fields, desilting of tanks, land development for SC, ST and BC communities, colony development, and housing construction. Any new law introduced by the Centre can be called “developmental” only if it improves upon these foundations.

Comparison between MGNREGA and VB–G RAM (G)

1. From demand-based guarantee to budget-controlled scheme

Under MGNREGA, there was no budget limit. Employment must be provided to everyone who demands work. However, under the new law, Section 4(5) authorises the Centre to decide in advance the budget allocation for each state. This effectively replaces the demand-driven system with one where employment is limited by central allocations. Further, Section 4(6) mandates that if expenditure exceeds the Centre’s allocation, the entire additional burden must be borne by the states. This clearly establishes that employment will now be determined by funds released by the Centre, not by people’s rights.

2. Curtailment of employment opportunities

Under MGNREGA, people had the right to demand work whenever required. But the new law imposes a 60-day ban on employment during the so-called agricultural season. Is this beneficial to farmers in reality? Central government data shows that among those working under MGNREGA, Dalits constitute 18.63% and Adivasis 17.32%. The remaining 64% belong to BC, OC and minority communities. Dalits and Adivasis are largely landless families dependent on wage work. A significant section of BC and OC workers are also small farmers who resort to MGNREGA work when their own agriculture is not viable. Government data also reveals that the majority of employment days are generated between February and June, when agricultural work is scarce. In the previous financial year, 286 crore workdays were generated, and 308 crore in the year before that. In the current year alone, from April to December 15, 168 crore workdays were created. In several states, more than 80% of workdays were generated between March and July. This clearly proves that workers turn to MGNREGA precisely when agricultural employment is unavailable. Imposing a 60-day ban in the name of agricultural seasons is like tying a rope around the legs of the poor. No farmer has ever demanded a ban on MGNREGA work. What farmers have demanded is MSP and support for rising input costs, which the Modi government is deliberately avoiding.

3. Shifting the financial burden to states – an attack on federalism

In the last financial year, more than ₹93,850 crore was spent on MGNREGA. Of this, the Centre contributed ₹85,333 crore (90%), while states contributed around ₹8,500 crore (10%). Under the new law, the Centre’s share will be reduced from 90% to 60%, while the states’ share will rise from 10% to 40%. This means an additional burden of over ₹29,000 crore will be imposed on states. Leaders like N Chandrababu Naidu, Pawan Kalyan and Jagan Mohan Reddy, instead of defending the interests of their states, enthusiastically voted in favour of this Bill in Parliament. Is imposing crushing financial burdens on states federalism? Is passing laws without consulting states and without their consent the spirit of cooperative federalism? This is the version of federalism preached by Modi & Co.

4. From 100 to 125 days – a mere illusion

The government is loudly claiming that employment has been increased from 100 to 125 days. But even under the 2005 Act, 100 days was only a minimum, not a maximum. Official data shows that in the last financial year, 5.78 crore households worked under MGNREGA, but only 40.7 lakh households completed 100 days of work. That is less than 8%. The real obstacle is not the law but the systematic reduction in budget allocations. When MGNREGA was introduced, allocations amounted to around 4% of the Union Budget. After the BJP came to power, this was steadily reduced. In the current financial year, allocations stand at just 1.37%, with only ₹80,000 crore provided, after cutting more than ₹1.4 lakh crore. Under these conditions, even providing 50 days of work per household has become impossible. Talking about 125 days without addressing these fundamental constraints is nothing but deception.

5. Centralisation of power and weakening of gram sabhas

Under MGNREGA, planning and implementation of works are done through gram sabhas. The new law introduces a National Rural Infrastructure Stack, under which the Centre will decide what works are to be undertaken and where. Bureaucratic control is strengthened, while gram sabha powers are diluted.

6. Wage determination

Under the 2005 Act, wages were linked to the Minimum Wages Act, 1948, with automatic revision based on inflation. If state governments fixed higher wages, those were recognised. Under the new Bill, wages fixed by the Centre will be final. There will be no linkage to inflation, and state-determined higher wages will not be recognised.

7. Exclusion of workers through technology

In violation of the spirit of the 2005 Act, Aadhaar linkage has already led to the cancellation of 1 crore job cards and deletion of 7 crore beneficiaries. Under KYC norms, another 27 lakh workers have been declared ineligible. Now, biometric attendance twice a day, geo-tagged photographs of worksites, and compulsory digital uploads have been made statutory. Under the pretext of technology, employment exclusion has been legalised.

8. Violation of working hour norms

While wages are being suppressed, working hours are being increased. The standard workday has been increased from 7 hours to 8 hours, and under Section 19(b), working hours can be extended up to 12 hours. This tramples upon decades of labour struggles and effectively legalises exploitation.

9. Employment only in centrally notified areas

Earlier, MGNREGA applied automatically to all rural areas. Under the new law, employment will be available only in villages notified by the Centre. State recommendations can be arbitrarily rejected.

10. From statutory right to centrally sponsored scheme

Under MGNREGA, any change required Parliamentary approval. The new Bill converts employment guarantee into a centrally sponsored scheme, allowing the government to impose changes through executive advisories. Earlier, workers could approach courts if employment or unemployment allowance was denied. That legal remedy is now effectively removed.

11. Opening the door for contractors

By categorising works into four types and allowing mechanisation, the Bill indirectly facilitates contractor entry, undermining the labour-intensive character of rural employment.

12. National-level steering committee – bureaucratic takeover

The Bill introduces a national-level steering committee consisting solely of officials, replacing participatory councils that included elected representatives, social activists and experts. This committee will decide fund allocation norms, work priorities and conditions, creating scope for arbitrariness and political misuse.

13. Renaming a political agenda

MGNREGA was named after Mahatma Gandhi to honour his legacy. On 15 December 2025, the Modi government removed Gandhi’s name and introduced this Bill as part of its Hindutva agenda. The acronym G-RAM (G) is a politically crafted name, mixing English and Hindi terms to suit ideological objectives.

Real intent behind VB–G RAM (G)

Rooted in the ideology of the RSS, Hindu Mahasabha and Jana Sangh, the BJP has opposed MGNREGA from the beginning. The sections that benefited most from employment guarantee — agricultural workers, Dalits, Adivasis, marginal farmers — stand in contradiction to this ideology. The real aim of this new law is to appease landed and wealthy classes, weaken rural collective strength, isolate the poor, and push them back into subservience.

This is not merely a change in law. This is a direct attack on livelihoods. If this “rights-snatching Bill” is not resisted, rural India will be pushed into hunger and distress. This is not reform — this is a war on the poor. (