The Union Government of India is replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) [1].
This transition marks a fundamental shift in how the state provides employment to rural citizens. While the previous law established a legal entitlement to work, the new framework moves toward a centrally controlled model.
MGNREGA was enacted in 2005 [2] to provide a legal entitlement for rural adults to demand work within 15 days [3]. For two decades, this system functioned as a safety net for millions of laborers across the country.
The new VB-G RAM G Act was slated to come into force on July 1, 2026 [4]. The government said the new scheme will modernize rural employment through a centrally controlled and budget-capped programme [5].
Critics and labor activists argue that the new law removes the enforceable right to work that existed under the previous administration. Social Welfare Minister H.C. Mahadevappa has been central to the administration's rollout of the new policy [1].
Opposition to the change has manifested in organized labor actions. Farm workers' unions and activists announced protests starting on July 1 to demand the repeal of the VB-G RAM G Act [6]. These demonstrations aim to highlight the loss of guaranteed employment rights for the rural poor.
Unlike the previous law, which focused on a demand-driven guarantee, the current system operates under a budget-capped structure [5]. This means the availability of work may now depend on allocated funds rather than the legal right of the citizen to demand employment.
“The new scheme will be budget-capped”
The shift from MGNREGA to VB-G RAM G represents a move from a rights-based welfare model to a discretionary, budget-managed system. By removing the legal mandate to provide work within a specific timeframe, the Indian government gains greater fiscal control over rural spending but eliminates the legal recourse for workers who are denied employment.
