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VB-G RAM G Act 2025 Replaces MGNREGA, Guarantees 125 Days Work with 60:40 Centre-State Funding Model

Target:UPSC GS-IIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
12 Jun 2026
~2 min
Source: The Hindu
Key Data:125 days work60:40 funding model₹92,550.17 crore allocationOver 58% women workers
Bodies:Ministry of Rural DevelopmentNREGA Sangharsh Morcha
Practice MCQs from today's news ▸
What This Article Covers

1.The MGNREGA (2005) is set to be replaced by the VB-G RAM G Act, 2025, effective July 1, 2026, after completing 20 years.

2.The new Act increases guaranteed workdays from 100 to 125 but introduces a central budget cap and a 60:40 Centre-State funding model, moving from a demand-based to a supply-driven scheme.

3.Critics argue the changes strip the core 'right to work' guarantee, weaken workers' bargaining power, and shift planning from Gram Panchayats to central priorities via Viksit Gram Panchayat Plans (VGPP).

The Big Picture
Prelims · HighMains · High

The landmark MGNREGA, which legally guaranteed the right to work for 20 years, is being replaced by the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G) from July 1, 2026. The new Act proposes 125 days of work but shifts from a demand-based, open-ended entitlement to a supply-driven, budget-capped model with a 60:40 Centre-State funding split, raising concerns about the dilution of the employment guarantee principle.

Exam Lens

Quick Exam Facts From News

MGNREGA Introduced2006 (Act passed in 2005)
VB-G RAM G RolloutJuly 1, 2026
Workdays (Old vs New)MGNREGA: 100 days | VB-G RAM G: 125 days
Funding Model (VB-G RAM G)60% Centre, 40% State
Women in MGNREGA (5-year avg)Over 58%
Interim Budget Allocation₹92,550.17 crore (Total for States)

1-Minute Revision

  • ›MGNREGA Introduced: 2006 (Act passed in 2005)
  • ›VB-G RAM G Rollout: July 1, 2026
  • ›Target this Data: VB-G RAM G guarantees 125 days of work (vs MGNREGA's 100).
  • ›Target this Nodal Body: Ministry of Rural Development (responsible for both MGNREGA and VB-G RAM G).
  • ›Target this Legal Point: The funding model for VB-G RAM G is a 60:40 Centre-State cost-sharing ratio.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which Union Ministry is the nodal ministry for implementing the MGNREGA and its proposed replacement, the VB-G RAM G Act?

Q2Statement-basedHard

Consider the following statements regarding the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G):

1. It guarantees 125 days of wage employment per rural household, replacing the 100-day guarantee under MGNREGA.

2. Unlike MGNREGA, its funding follows a 50:50 cost-sharing model between the Centre and the States.

3. It introduces a 'Seasonal Alignment Window' allowing states to suspend works for up to 60 days during peak agricultural seasons.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what has been the average percentage of women workers under MGNREGA for the last five years?

Q4Application/ImpactMedium

A key criticism of the VB-G RAM G Act, as highlighted in the article, is that it fundamentally shifts the scheme's operational model. What is this core shift?

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