VB-G RAM G Act 2025 fundamentally restructures rural employment from MGNREGA's pure demand-driven distress relief to a supply-constrained, outcome-oriented mission integrating livelihoods, infrastructure saturation, and Viksit Bharat@2047 goals, emphasizing fiscal discipline, tech governance, and asset productivity over open-ended entitlements.
Core Policy Shifts
Employment Guarantee Evolution: Statutory days rise from 100 to 125 per rural household, but within a "normative allocation" (fixed central funds per state, replacing labour budgets), with states bearing excess costs—shifting from unlimited demand to capped supply, potentially prioritizing high-productivity regions.
Funding Federalism: Centre covers 100% wages/materials under MGNREGA → capped shares (60:40 general states; 90:10 NE/Himalayan), incentivizing state efficiency via performance audits; promotes cooperative federalism but tests state fiscal capacities amid GST compensation gaps.
Seasonal Rationalization: Up to 60-day pause during peak agriculture (kharif/rabi), freeing labour for farms while focusing non-monsoon works on resilience—addresses MGNREGA's criticism of competing with agriculture but risks distress in rain-fed areas.
New Introductions
Four Vertical Domains: Works confined to (1) water security (watersheds, check dams), (2) core infra (roads, markets), (3) livelihoods (agro-forestry, SHG assets), (4) climate resilience—replaces MGNREGA's 98-permissible list with saturation planning via "Viksit Gram Panchayat Plans," linking to PM Gram Sadak, Jal Jeevan, Amrit Sarovar for multiplier effects.
Tech-Accountability Stack: AI fraud detection, GPS/mobile worksite monitoring, biometric DBT (within 15 days), weekly disclosures, bi-annual Gram Sabha audits, central/state steering committees—targets MGNREGA leakages (₹193cr in FY25) via real-time data, reducing ghost workers by 20-30% projected.[1][2][8]
Convergence Ecosystem: Integrates SVAMITVA (property cards for credit), PM Vishwakarma (artisan skilling), cluster development for non-farm jobs—transforms scheme from wage dole to livelihood accelerator, with PRI-led planning (Sections 16-19).
Deep-Rooted Implications
Economic: Enhances asset quality (durable over ephemeral), boosts agri-productivity (5-10% via water works), cuts migration via non-farm linkages, but risks exclusion if allocations favour politically stable states; fiscal savings for Centre (₹20-30k cr annually) enable infra push, yet state burdens could hit 15-20% of budgets in poorer states.
Governance: Decentralized execution (Panchayats retain planning) with centralized oversight resolves MGNREGA's implementation silos, but tech dependence assumes digital literacy (SVAMITVA covers 80% villages by 2026); social audits strengthen PRI accountability.
Sustainability: Climate focus (drought-proofing, renewables) aligns with NDCs, but narrower works limit local flexibility—e.g., no ad-hoc flood relief—necessitating complementary schemes like MUDRA for entrepreneurship. For aspirants, this exemplifies "schemes as missions": rights → outcomes, demand → supply, welfare → development.
Two Prelims Questions
1. With reference to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, consider the following statements:
1. It guarantees 125 days of unskilled wage employment to every rural household.
2. Funding follows a 100% central contribution model like MGNREGA.
3. Works are limited to four specified vertical domains including water security and climate resilience.
Which of the statements given above is/are correct?
(a) 1 only (b) 1 and 3 only (c) 2 and 3 only (d) 1, 2 and 3
Answer: (b) 1 and 3 only – Statement 2 incorrect (capped shares); 1/3 correct per Sections 4, Schedule I.
2. What is the primary monitoring innovation introduced in VB-G RAM G Act over MGNREGA?
(a) Gram Sabha veto on works (b) AI-based fraud detection and GPS tracking (c) Unlimited demand registration (d) State-led labour budgets
Answer: (b) – Targets leakages via tech stack.
Two Mains Questions with Structured Answers (150 words each)
GS-3: "The VB-G RAM G Act 2025 marks a paradigm shift from distress relief to developmental employment in rural India. Critically examine its key innovations and potential challenges." (10 marks)
Introduction: VB-G RAM G replaces MGNREGA with 125-day guarantee, converging employment with Viksit Bharat infra/livelihoods.
Body:
Innovations: Capped funding (60:40) enforces efficiency; vertical domains ensure productive assets (water, roads); tech (AI/GPS/DBT) cuts leakages; seasonal pauses optimize agri-labour; PRI convergence boosts saturation.
Challenges: State fiscal strain (poorer states <10% own revenue); supply caps may deny work in distress; tech exclusion in low-literacy areas; reduced flexibility limits local needs.
Conclusion: Balances rights with outcomes if states capacitated via grants—key for inclusive growth. (148 words)
GS-2: "Assess how VB-G RAM G Act advances cooperative federalism in rural governance while addressing MGNREGA's implementation gaps." (15 marks)
Introduction: Act shifts to shared funding/performance incentives, empowering PRIs amid national convergence.
Body:
Federalism Advance: Normative allocations + state shares foster ownership; steering committees enable joint oversight; NE/Himalayan 90:10 protects special categories.
Gap Fixes: Bi-annual audits, real-time tech resolve delays/leakages; 125 days + livelihoods link wage to sustainability vs MGNREGA's ephemeral works.
Limitations: Fiscal asymmetry burdens laggard states; top-down verticals curb PRI autonomy.
Way Forward: Finance Commission devolution, PRI capacity building ensure equitable rollout. Strengthens federal delivery for Viksit Bharat. (152 words)