**Executive Summary**
The Viksit Bharat- G RAM G Bill 2025, replaces MGNREGA to align with the Viksit Bharat 2047 vision. Key changes include increasing employment guarantees to 125 days per rural household, linking wage employment to durable rural infrastructure, and strengthening decentralised planning. The Bill was published by PIB Delhi on 18 DEC 2025.
**Key Points / Main Content**
* **Overarching Changes:**
* Replaces MGNREGA with a new statutory framework.
* Aligns with the Viksit Bharat 2047 vision.
* **Employment Guarantee:**
* Enhances employment guarantee to 125 days per rural household.
* Workers receive 125 guaranteed days of employment within the remaining 305 days.
* Includes a 60-day no-work period during peak sowing and harvesting.
* Entitlement to unemployment allowance if work is not provided (liability resting on the States, payable after 15 days of no work.)
* **Focus Areas and Planning:**
* Links wage employment with durable rural infrastructure across 4 priority areas: Water security, Core-rural infrastructure, Livelihood-related infrastructure, Special works to mitigate extreme weather events.
* Strengthens decentralised planning through Viksit Gram Panchayat Plans.
* Nationally integrated through the Viksit Bharat National Rural Infrastructure Stack.
* **Financial Restructuring:**
* Shifts to normative funding and a centrally sponsored structure with a 60:40 cost-sharing ratio between Centre and States (90:10 for North Eastern and Himalayan states, and 100% central funding for Union Territories without legislatures).
* Increases administrative expenditure ceiling from 6% to 9%.
* **Transparency and Accountability:**
* Improves predictability, accountability, and Centre-State partnership.
* Employs AI-based monitoring, real-time dashboards, and mandatory social audits.
* Establishes clear institutional framework for implementation.
* Enables AI and biometric authentication to identify irregularities.
* Central and State Steering Committees provide guidance and coordination.
* Real-time MIS dashboards and weekly public disclosures for visibility.
* Social audits mandated at least once every six months.
* **Implementation and Monitoring**
* Central and State Gramin Rozgar Guarantee Councils: provide policy guidance, review implementation, and strengthen accountability.
* National and State Steering Committees: drive strategic direction, convergence, and performance review.
* Panchayati Raj Institutions: lead planning and execution, with Gram Panchayats implementing at least half of the works in terms of cost.
* District Programme Coordinators and Programme Officers: manage planning, compliance, payments, and social audits.
* Gram Sabhas: play a strengthened role in conducting social audits and ensuring transparency through access to all records.
**Impact Analysis**
**Farmers**
* **Impact:** Benefit from assured labour availability during peak seasons, prevention of wage inflation, and improved infrastructure.
* **Action Required:** None specified.
**Labourers**
* **Impact:** Gain from higher earning potential, predictable work, secure digital wage payments, and direct benefits from improved village infrastructure.
* **Action Required:** None specified.
**States**
* **Impact:** Shared cost and responsibility through a normative allocation framework; bearing the liability to pay unemployment allowance.
* **Action Required:** Implement Viksit Gram Panchayat Plans.
Key Entities Referenced
Viksit Bharat- G RAM G Bill, 2025: Proposed bill to reform rural employment, replacing MGNREGA with a new framework.
MGNREGA: The Mahatma Gandhi National Rural Employment Guarantee Act, the existing rural employment program that the proposed bill seeks to replace.
Viksit Bharat 2047: The long-term vision of India that the proposed bill aims to align with.
Viksit Gram Panchayat Plans: Decentralized planning at the village level integral to Viksit Bharat- G RAM G Bill, 2025.
Viksit Bharat National Rural Infrastructure Stack: A unified, coordinated national development strategy that the Viksit Bharat- G RAM G Bill, 2025 will create.
PIB Headquarters
Viksit Bharat- G RAM G Bill 2025
“Reforming MGNREGA for Viksit Bharat”
प्रव तथ: 18 DEC 2025 11:59AM by PIB Delhi
Key Takeaways
The Viksit Bharat- G RAM G Bill, 2025 replaces MGNREGA with a new statutory framework
aligned with Viksit Bharat 2047.
The employment guarantee is enhanced to 125 days per rural household, strengthening income
security
Links wage employment with durable rural infrastructure across 4 priority areas.
Strengthens decentralised planning through Viksit Gram Panchayat Plans and nationally
integrated through the Viksit Bharat National Rural Infrastructure Stack.
The shift to normative funding and a centrally sponsored structure improves predictability,
accountability and Centre-State partnership.
Introduction
Rural employment has been a cornerstone of India’s social protection framework for nearly two decades.
Since its enactment in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) played a key role in providing wage employment, stabilising rural incomes and creating
basic infrastructure. Over time, however, the structure and objectives of rural India have evolved
significantly. Rising incomes, expanded connectivity, widespread digital penetration and diversified
livelihoods have altered the nature of rural employment needs.
Against this backdrop, the Government has proposed the Viksit Bharat- Guarantee for Rozgar and
Ajeevika Mission (Gramin) Bill, 2025, also referred to as Viksit Bharat- G RAM G Bill, 2025. The Bill
represents a comprehensive statutory overhaul of MGNREGA, aligning rural employment with the long-
term vision of Viksit Bharat 2047, while strengthening accountability, infrastructure outcomes and
income security.Background of Rural Employment and Development Policy in India
Since Independence, rural development policies in India have focused on reducing poverty, improving
agricultural productivity, and creating employment for surplus and underemployed rural labour. Wage
employment programmes have gradually evolved as key instruments for supporting rural livelihoods
while also strengthening basic infrastructure, with approaches adapting to changing socio-economic
conditions over time.
India’s wage employment initiatives progressed through multiple phases, beginning with early
programmes such as the Rural Manpower Programme (1960s) and the Crash Scheme for Rural
Employment (1971). These were followed by more structured efforts in the 1980s and 1990s, including
the National Rural Employment Programme, Rural Landless Employment Guarantee Programme,
later merged into Jawahar Rozgar Yojana (1993), which consolidated into Sampoorna Grameen
Rozgar Yojana in 1999, aimed at improving coverage and coordination. Complementary schemes such as
the Employment Assurance Scheme and the Food for Work Programme addressed seasonal
unemployment and food security. A major shift came with the Maharashtra Employment Guarantee
Act of 1977, which introduced the concept of a statutory right to work. These experiences culminated in
the enactment of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in
2005, providing a nationwide legal framework for rural employment generation.
MGNREGA Evolution and the Limits of Incremental Reform
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was a flagship
programme aimed at enhancing livelihood security by providing at least 100 days of guaranteed wage
employment each year to rural households willing to undertake unskilled manual work. Over the years, a
range of administrative and technological reforms strengthened its implementation, leading to notable
improvements in participation, transparency, and digital governance. Women’s participation rose steadily
from 48 per cent to 58.15 per cent between FY 2013-14 and FY 2025-26, Aadhaar seeding expandedsharply, the Aadhaar-Based Payment System was widely adopted, and electronic wage payments became
nearly universal. Monitoring of works also improved, with a large expansion in geo-tagged assets and a
growing share of individual assets created at the household level.
The experience under MGNREGA also highlighted the critical role played by field-level staff, who
ensured continuity and scale of implementation despite working with limited administrative resources and
staffing. However, alongside these gains, deeper structural issues persisted. Monitoring across several
states revealed gaps such as work not found on the ground, expenditure not matching physical progress,
use of machines in labour-intensive works, and frequent bypassing of digital attendance systems. Over
time, misappropriation accumulated, and only a small proportion of households were able to complete the
full one hundred days of employment in the post pandemic period. These trends indicated that while
delivery systems improved, the overall architecture of MGNREGA had reached its limits.
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin Bill responds to this
experience through a comprehensive legislative reset. It strengthens the implementation framework by
increasing the administrative expenditure ceiling from 6 per cent to 9 per cent, providing greater support
for staffing, remuneration, training, and technical capacity. This shift reflects a practical and people-
centred approach to programme management, moving towards a more professional and adequately
supported system. Stronger administrative capacity is expected to improve planning and execution,
enhance service delivery, and reinforce accountability, ensuring that the objectives of the new framework
are achieved consistently at the village level.
Rationale for a New Statutory Framework
The need for reform is also rooted in broader socio-economic changes. MGNREGA was built in 2005,
but rural India has transformed. Poverty levels declined from 27.1 per cent in 2011-12 to 5.3 per cent in
2022-23, supported by rising consumption, improved financial access, and expanded welfare coverage.
With rural livelihoods becoming more diversified and digitally integrated, the open-ended and demand-
driven design of MGNREGA no longer aligns fully with contemporary rural realities.
The Viksit Bharat- G RAM G Bill, 2025 responds to this context by modernising rural employment
guarantees, strengthening accountability, and aligning employment creation with long term infrastructure
and climate resilience goals.
Key Features of the Viksit Bharat- G RAM G Bill, 2025The Bill guarantees 125 days of wage employment per rural household in each financial year to such
rural households whose adult members volunteer to undertake unskilled manual work, contributing to
income security beyond the earlier 100-day entitlement, with an aggregated 60-day no-work period to
ensure the availability of agricultural labour during peak sowing and harvesting season. Workers continue
to receive 125 guaranteed days of employment within the remaining 305 days, ensuring that both
farmers and labourers benefit. The disbursement of daily wages shall be made on a weekly basis or, in
any case, not later than a fortnight after the date on which such work was done. Employment creation is
integrated with infrastructure development through four priority verticals:
Water security through water-related works
Core-rural infrastructure
Livelihood- related infrastructure
Special works to mitigate extreme weather events
All assets created are aggregated into the Viksit Bharat National Rural Infrastructure Stack, ensuring a
unified, coordinated national development strategy. Planning is decentralised through Viksit Gram
Panchayat Plans, which are prepared locally and spatially integrated with national systems such as PMGati Shakti.
MGNREGA vs VIKSIT BHARAT- G RAM G Bill, 2025
The new Bill represents a major upgrade over MGNREGA, fixing structural weaknesses while enhancing
employment, transparency, planning, and accountability.
The Financial Architecture
The shift from a central sector scheme to a centrally sponsored framework reflects the inherently
local nature of rural employment and asset creation. Under the new architecture, states share both
cost and responsibility through a normative allocation framework, creating stronger incentives for
effective implementation and preventing misuse. Planning is grounded in regional realities through
Gram Panchayat Plans. At the same time, the Centre continues to set standards, while states execute
with accountability, resulting in a cooperative partnership that improves efficiency and strengthens
outcomes.The total estimated annual requirement of funds on wage, material, and administrative components is
Rs.1,51,282 crore, including the State share. Of this, the estimated Central share is Rs.95,692.31 crore.
This transition does not impose an undue financial burden on states. The funding structure is
calibrated to state capacity, with a standard cost-sharing ratio of 60:40 between the Centre and states,
enhanced support of 90:10 for North Eastern and Himalayan states, and 100 per cent central funding
for Union Territories without legislatures. States were already bearing a share of material and
administrative costs under the earlier framework, and the move to predictable normative allocations
further supports sound budgeting. Provisions for additional assistance to states during disasters and
stronger oversight mechanisms also help reduce long term losses arising from misappropriation,
reinforcing fiscal sustainability alongside accountability.
Benefits of the Viksit Bharat- G RAM G Bill
The Bill strengthens the rural economy by linking employment generation with productive asset creation,
leading to higher household incomes and improved resilience. Priority is given to water-related works,
supporting agriculture and groundwater recharge. Investment in core rural infrastructure, such asroads and connectivity, improves market access, while livelihood infrastructure, including storage,
markets, and production assets, enables income diversification. Climate resilience is strengthened
through works focused on water harvesting, flood drainage, and soil conservation. The guarantee of
125 days of employment raises household earnings, stimulates village-level consumption, and helps
reduce distress-driven migration, supported by digital attendance, wage payments, and data-driven
planning.
Farmers benefit from assured labour availability through state-notified pauses in public works during
peak sowing and harvesting seasons, prevention of wage inflation, and improved irrigation, storage,
and connectivity. Labourers gain from higher potential earnings, predictable work through Viksit Gram
Panchayat Plans, secure digital wage payments, direct benefits from the assets they help create, and a
mandatory unemployment allowance. Where work is not provided, a daily unemployment allowance
becomes payable after 15 days, with liability resting on the States. The rates and conditions are to be
prescribed through rules, ensuring flexibility while safeguarding workers’ rights and promoting the timely
provision of employment.
Implementing and Monitoring Authorities
The Bill establishes a clear institutional framework to ensure coordinated, accountable, and transparent
implementation of the Mission across national, State, district, block, and village levels.Central and State Gramin Rozgar Guarantee Councils provide policy guidance, review
implementation, and strengthen accountability.
National and State Steering Committees drive strategic direction, convergence, and performance
review.
Panchayati Raj Institutions lead planning and execution, with Gram Panchayats implementing at
least half of the works in terms of cost.
District Programme Coordinators and Programme Officers manage planning, compliance,
payments, and social audits.
Gram Sabhas play a strengthened role in conducting social audits and ensuring transparency
through access to all records.
Transparency, Accountability, and Social Protection
The Bill equips the Central Government with clear enforcement powers to ensure compliance and protect
public funds. It authorises the Centre to investigate complaints relating to implementation, suspend
fund releases where serious irregularities are detected, and direct corrective or remedial measures
to address deficiencies. These provisions strengthen accountability across the system, maintain financial
discipline, and enable timely intervention to prevent misuse.
The Bill also establishes a comprehensive transparency framework covering every stage of
implementation. It enables the use of artificial intelligence and biometric authentication to identify
irregularities early, supported by Central and State Steering Committees that provide continuous
guidance and coordination. A focused approach through four clearly defined rural development verticals
allows closer tracking of outcomes. Panchayats are assigned an enhanced role in supervision,
complemented by GPS and mobile-based monitoring of works in real time. Real-time MIS
dashboards and weekly public disclosures ensure public visibility, while social audits mandated at least
once every six months reinforce community participation and trust.
Conclusion
The Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, represents a
decisive shift in India’s rural employment policy. While MGNREGA achieved significant gains in
participation, digitisation, and transparency over time, persistent structural weaknesses limited itseffectiveness. The new Bill builds on past improvements while addressing their shortcomings through a
modern, accountable, and infrastructure-focused framework.
By expanding guaranteed employment, aligning work with national development priorities, and
embedding strong digital governance, the Bill repositions rural employment as a strategic instrument for
sustainable growth and resilient livelihoods, fully aligned with the vision of Viksit Bharat 2047.
References
Ministry of Rural Development
https://mnregaweb4.nic.in/netnrega/SocialAuditFindings/SAU_FMRecoveryReport.aspx?lflag=eng&fin_
year=2024-2025&source=national&labels=labels&rep_type=SoA&Digest=3uRMVt6308BGCW2QZYtt
XQ
Lok Sabha Bill
https://sansad.in/getFile/BillsTexts/LSBillTexts/Asintroduced/As intro1216202512439PM.pdf?source
=legislation
News on Air
https://www.newsonair.gov.in/indias-extreme-poverty-falls-to-5-3-in-2022-2023-says-world-bank/
PIB Press Releases
https://www.pib.gov.in/PressNoteDetails.aspx?id=155090&NoteId=155090&ModuleId=3®=3&lan
g=2
Click here to see pdf
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