The Union government is set to introduce the “Viksit Bharat—Guarantee For Rozgar And Ajeevika Mission (Gramin)” bill, which aims to replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA), during the ongoing winter session of Parliament. The new legislation enhances the number of workdays from 100 to 125, while simultaneously increasing the financial burden on states and dismantling the demand-driven structure of the existing law.
The government circulated the bill to Parliamentarians on Monday (December 15, 2025), framing it as legislation to “establish a rural development framework aligned with the national vision of Viksit Bharat @2047.” The bill also specifies its shortened name as “G-Ram-G.”
Under MGNREGA, the wage bill was borne entirely by the Centre, while states shared the cost of materials for infrastructure and other administrative expenses. However, Section 22 of the new bill specifies that, for states other than those in the Northeast, Himalayan states, and three Union Territories, the states will now bear 40% of the total expenditure incurred.
While this increases the financial burden on states, the new bill also gives the Centre greater control over where and how the scheme will be implemented. Section 4(5) states: “The Central government shall determine the state-wise normative allocation for each financial year, based on objective parameters as may be prescribed by the central government.” Unlike MGNREGA, which was demand-based...
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