New Delhi: India’s Economic Survey 2025–26 has outlined a major overhaul of the country’s rural employment framework with the introduction of the Viksit Bharat–Guarantee for Rural Employment and Livelihood Mission (VB G-RAM G) Act, 2025. The government describes the new law as a transformative upgrade to the long-running Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), addressing its structural limitations while expanding employment coverage, transparency, and accountability.
Implemented in 2005, MGNREGA guaranteed 100 days of unskilled wage employment to rural households and played a critical role in stabilizing rural incomes and creating basic infrastructure. However, the Economic Survey notes that changing rural realities—driven by digital adoption, improved connectivity, and diversified income needs—have necessitated a more advanced and targeted employment model.
Expanded Employment Guarantee and Focus Areas
Under the VB G-RAM G Act, each rural household is now legally entitled to 125 days of employment per financial year, up from 100 days under MGNREGA. The program prioritizes four key sectors:
- Water security
- Rural infrastructure development
- Livelihood generation
- Extreme weather resilience and disaster preparedness
The shift reflects a broader policy goal of linking short-term employment support with long-term rural resilience.
Women’s Participation and Digital Reforms
The Survey highlights a sharp rise in women’s participation, increasing from 48% to 58.1%, signaling stronger gender inclusion in rural labor markets. Wage payments are now almost entirely digital, with earnings transferred directly into workers’ bank accounts through Aadhaar-linked systems.
Technology has also improved monitoring and accountability. Assets created under the program are geo-tagged, individual-level works have expanded, and centralized digital dashboards track progress in real time.
New Cost-Sharing Formula
A significant structural change under VB G-RAM G is the revised funding pattern. While the central government earlier bore nearly 90% of the costs under MGNREGA, expenses are now shared 60% by the central government and 40% by states. Policymakers argue that this shift increases state ownership, encourages local customization, and strengthens implementation.
Greater Role for Local Governments
The Act places gram panchayats at the center of planning and execution. At least half of total project expenditure is now decided at the local level, enabling villages to design projects aligned with their specific needs. The program is integrated with the national PM Gati Shakti framework to ensure coordination with broader infrastructure development plans.
All assets created under VB G-RAM G will be mapped into the Viksit Bharat National Rural Infrastructure Stack, linking rural employment initiatives with India’s long-term development strategy.
Enhanced Transparency and Oversight
The central government has been empowered to investigate complaints, suspend funds in cases of serious irregularities, and mandate corrective actions. Governance reforms include GPS-based monitoring, management information system (MIS) dashboards, weekly public disclosures, and mandatory social audits every six months.
Strengthening the Rural Economy
India’s rural economy—spanning over 665,000 villages and 268,000 gram panchayats—remains a cornerstone of national growth. The Economic Survey emphasizes that sustainable rural development depends not only on financial support and infrastructure, but also on community participation and collective action.
According to the government, the VB G-RAM G Act represents a modernized employment guarantee framework that blends legal assurance, digital governance, and long-term economic planning—aimed at strengthening rural livelihoods while supporting India’s broader vision of inclusive development.