Rural employment has been a cornerstone of India’s social protection framework for nearly two decades. Since its enactment in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) played a key role in providing wage employment, stabilising rural incomes and creating basic infrastructure. Over time, however, the structure and objectives of rural India have evolved significantly. Rising incomes, expanded connectivity, widespread digital penetration and diversified livelihoods have altered the nature of rural employment needs. Against this backdrop, the Government has introduced the Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, also referred to as Viksit Bharat- G RAM G Act, 2025. The Act represents a comprehensive statutory overhaul of MGNREGA, aligning rural employment with the long-term vision of Viksit Bharat 2047, while strengthening accountability, infrastructure outcomes and income security. Key Features of the Viksit Bharat- G RAM G Act, 2025 The Act guarantees 125 days of wage employment per rural household in each financial year to such rural households whose adult members volunteer to undertake unskilled manual work, contributing to income security beyond the earlier 100-day entitlement, with an aggregated 60-day no-work period to ensure the availability of agricultural labour during peak sowing and harvesting season. Workers continue to receive 125 guaranteed days of employment within the remaining 305 days, ensuring that both farmers and labourers benefit. The disbursement of daily wages shall be made on a weekly basis or, in any case, not later than a fortnight after the date on which such work was done. Employment creation is integrated with infrastructure development through four priority verticals: Water security through water-related works Core-rural infrastructure Livelihood- related infrastructure Special works to mitigate extreme weather events All assets created are aggregated into the Viksit Bharat National Rural Infrastructure Stack, ensuring a unified, coordinated national development strategy. Planning is decentralised through Viksit Gram Panchayat Plans, which are prepared locally and spatially integrated with national systems such as PM Gati Shakti. MGNREGS Vs Viksit Bharat-G RAM G MGNREGA VIKSIT BHARAT- G RAM G Act, 2025 100 days of wage employment per rural household 125 days of wage employment per rural household Multiple and scattered categories of works with limited strategic focus 4 clearly defined priority areas focusing on water security, rural infrastructure, livelihoods and climate resilience Center bears unskilled wage costs, states bear unemployment allowance State cost-sharing for wages, 60:40 for most states, 90:10 for certain special-category regions No explicit statutory "pause window" States can notify up to 60 days in a FY when work will not be executed Demand based funding with unpredictable allocations Normative funding ensuring predictable budgeting while protecting the employment guarantee Gram Panchayat planning is central Integrates institutionalised convergence and infrastructure planning The Financial Architecture The shift from a central sector scheme to a centrally sponsored framework reflects the inherently local nature of rural employment and asset creation. Under the new architecture, states share both cost and responsibility through a normative allocation framework, creating stronger incentives for effective implementation and preventing misuse. Planning is grounded in regional realities through Gram Panchayat Plans. At the same time, the Centre continues to set standards, while states execute with accountability, resulting in a cooperative partnership that improves efficiency and strengthens outcomes. The total estimated annual requirement of funds on wage, material, and administrative components is Rs.1,51,282 crore, including the State share. Of this, the estimated Central share is Rs.95,692.31 crore. This transition does not impose an undue financial burden on states. The funding structure is calibrated to state capacity, with a standard cost-sharing ratio of 60:40 between the Centre and states, enhanced support of 90:10 for North Eastern and Himalayan states, and 100 per cent central funding for Union Territories without legislatures. States were already bearing a share of material and administrative costs under the earlier framework, and the move to predictable normative allocations further supports sound budgeting. Provisions for additional assistance to states during disasters and stronger oversight mechanisms also help reduce long term losses arising from misappropriation, reinforcing fiscal sustainability alongside accountability. Implementing and Monitoring Authorities The Act establishes a clear institutional framework to ensure coordinated, accountable, and transparent implementation of the Mission across national, State, district, block, and village levels. Central and State Gramin Rozgar Guarantee Councils provide policy guidance, review implementation, and strengthen accountability. National and State Steering Committees drive strategic direction, convergence, and performance review. Panchayati Raj Institutions lead planning and execution, with Gram Panchayats implementing at least half of the works in terms of cost. District Programme Coordinators and Programme Officers manage planning, compliance, payments, and social audits. Gram Sabhas play a strengthened role in conducting social audits and ensuring transparency through access to all records. Transparency, Accountability, and Social Protection The Act equips the Central Government with clear enforcement powers to ensure compliance and protect public funds. It authorises the Centre to investigate complaints relating to implementation, suspend fund releases where serious irregularities are detected, and direct corrective or remedial measures to address deficiencies. These provisions strengthen accountability across the system, maintain financial discipline, and enable timely intervention to prevent misuse. The Act also establishes a comprehensive transparency framework covering every stage of implementation. It enables the use of artificial intelligence and biometric authentication to identify irregularities early, supported by Central and State Steering Committees that provide continuous guidance and coordination. A focused approach through four clearly defined rural development verticals allows closer tracking of outcomes. Panchayats are assigned an enhanced role in supervision, complemented by GPS and mobile-based monitoring of works in real time. Real-time MIS dashboards and weekly public disclosures ensure public visibility, while social audits mandated at least once every six months reinforce community participation and trust. Source : PIB