MGNREGA Replacement: States Await Rs 9,700 Crore as Centre Introduces VB-G RAM G Bill

The government states that the new legislation aligns rural employment initiatives with the vision of Viksit Bharat 2047.

New Delhi:

While the Centre proceeds with plans to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), states remain owed over Rs 9,700 crore under the existing program. Parliamentary data reveals a significant disparity between the promised 125 days of employment under the new framework and the current national average, which barely exceeds 50 days for 2024-25.

The bill introducing Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen), or VB-G RAM G, has been presented to Parliament as a replacement for MGNREGA. According to the government, this legislation better aligns rural employment strategies with the broader Viksit Bharat 2047 vision.

Government figures as of December 5, 2025, show total outstanding liabilities under MGNREGA amount to Rs 9,746.39 crore. This includes Rs 1,340.07 crore in wage components, Rs 7,863.37 crore in material components, and Rs 542.95 crore in administrative expenses. The current financial year (FY 2025-26) has allocated Rs 86,000 crore to MGNREGA. The government notes that fund releases and pending dues are continuously changing.

Implementation challenges extend beyond payment delays, with the scheme failing to meet its legal guarantee of providing 100 days of employment per rural household. Parliamentary data indicates the national average employment generated was 50.24 days in 2024-25, down from 52.07 days in the previous fiscal year.

Currently operating across 34 states and Union Territories, MGNREGA implementation varies significantly by region. Mizoram recorded the highest average employment at 95.62 days, while West Bengal reported zero workdays in 2024-25, which the Centre attributes to administrative non-compliance.

The government explains that West Bengal's labor budget for FY 2021-22 was not approved by the Empowered Committee of the Department of Rural Development due to repeated violations of departmental directives. Consequently, fund releases to the state were halted effective March 9, 2022. Pending liabilities for West Bengal as of March 8, 2022, stand at Rs 1,457.22 crore for wages and Rs 1,607.68 crore for material components.

Most states are currently providing approximately 50 days of employment to households under the scheme.

MGNREGA, launched in 2005 by the UPA government, has served as one of India's largest social security programs over the past two decades, providing legal work rights and functioning as a vital safety net for rural households.

The newly introduced VB-G RAM G Bill proposes to increase the guaranteed employment period from 100 to 125 days. It also commits to faster wage payments, promising disbursements within 7 to 15 days after work completion, with compensation provisions for workers in case of delays.