Draft Rules for VB-G RAM G:
The Centre has released draft rules for the new Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G) Act, 2025 which will replace the 20-year-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from July 2026.
- The draft rules propose a new allocation formula based on the 16th Finance Commission’s devolution criteria and introduce performance-based funding for States.
Key Highlights of the Draft rules for the VB-G RAM G Act, 2025:
- Shift to a “Normative Allocation” Funding Model: The draft rules shift away from MGNREGA’s open-ended, demand-driven funding model.
- Central allocations will now act as a spending ceiling based on the objective horizontal devolution formula recommended by the 16th Finance Commission.
- Prioritizing Poorer States: The formula relies heavily on GSDP Distance (42.5% weightage), which measures how far a State’s per capita income falls short of the wealthiest States, ensuring poorer States get a larger share.
- The next highest weightage is given to population (17.5%), benefiting larger States, while all of the other metrics carry a 10% weightage each in this formula.
- Revised Cost-Sharing: Unlike MGNREGA, where the Centre paid 100% of the wage bill, the new framework implements a 60:40 cost-sharing ratio between the Centre and most States (90:10 for northeastern and Himalayan States).
- Any expenditure beyond the normative allocation must be borne entirely by the State.
- Performance-Linked Funding: From the second year of implementation, a portion of the Central allocation will be contingent on State-level performance criteria.
- These metrics include the timely payment of wages, strict compliance with social audit requirements, and the percentage of completed public works.
- Governance and Administrative Mechanisms:
- National Level Steering Committee: A 16-member committee headed by the Union Rural Development Secretary. Its mandate is to recommend decisions relating to normative allocations to States, set standards, and monitor guidelines.
- Composition: It will include at least five representatives from State governments (nominated by the Centre), along with representatives from NITI Aayog and other Union Ministries.
- Central Gramin Rozgar Guarantee (GRG) Council: Headed by the Union Minister for Rural Development, this body is intended to advise the Centre on the overall implementation of the new law.
- Temporary Validity of Job Cards: Existing e-KYC-verified MGNREGA job cards will remain valid during the transition phase until new Gramin Rozgar Guarantee Cards are issued to workers.
