VB-G RAM G Scheme Explained for UPSC

VIKSIT BHARAT–GUARANTEE FOR ROZGAR AND AJEEVIKA MISSION (GRAMIN) (VB-G RAM G)

Why in the News?

  • New Wage Floor: The Centre fixed a minimum wage of ₹300 per day under the VB-G RAM G Act, 2025, effective from July 1, 2026, strengthening economic security for eligible voters in rural areas.
  • Scheme Replaced: The VB-G RAM G Act has officially replaced the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, following an intensive revision of rural employment policies.
  • Policy Debate: The new wage structure and Centre–State cost-sharing model have triggered discussions among political parties and policy experts, with implications for electoral democracy and governance.

VB-G RAM G Scheme Explained for UPSC

VB-G RAM G ACT, 2025

  • Launch Objective: The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) aims to enhance rural employment, livelihood security, and durable asset creation through guaranteed wage employment, supporting voter awareness and participatory governance at the grassroots level.
  • Employment Guarantee: The Act increases the annual employment guarantee from 100 days to 125 days per rural household willing to undertake unskilled manual work, ensuring economic empowerment across every assembly constituency and parliamentary constituency.
  • Funding Pattern: It introduces a 60:40 Centre–State cost-sharing ratio for most States and 90:10 for North-Eastern States and Union Territories with legislature, implemented through the district election officer and administrative machinery.
  • Implementation Features: Existing e-KYC verified job cards remain valid until Gramin Rozgar Guarantee Cards are issued, and ongoing works continue under the new framework. The verification process, similar to voter registration mechanisms, ensures transparency and prevents duplicate voters-like anomalies in beneficiary databases.
  • Seasonal Provision: States may notify up to 60 days during sowing or harvesting seasons when employment under the scheme may be temporarily suspended, with notifications issued through the booth level officer network at the polling station level.

WAGE DETERMINATION UNDER VB-G RAM G

  • National Floor Wage: A minimum wage of ₹300 per day has been prescribed, raising wages in States where the previous wage was below this level, with the qualifying date for implementation set as July 1, 2026.
  • Highest Wages: Haryana (₹409), Goa (₹406), and Kerala (₹401) have the highest notified wage rates under the scheme, reflecting better gender ratio in workforce participation and economic development.
  • Major Beneficiaries: Significant wage increases were recorded in Uttar Pradesh, Bihar, Madhya Pradesh, and Rajasthan, benefiting millions of rural workers whose names appear in the electoral rolls and employment databases maintained by the electoral registration officer and rural development authorities.
  • Regional Variation: States already paying above ₹300, including Telangana, Andhra Pradesh, Tamil Nadu, and Karnataka, witnessed only marginal revisions following the special intensive revision (SIR) of wage structures.
  • Wage Revision Basis: Wage rates are notified by the Ministry of Rural Development, considering the national floor wage and State-specific conditions, with continuous updation mechanisms similar to electoral roll revision processes to ensure accuracy.

ABOUT MGNREGA

●  Legal Framework: Enacted in 2005, MGNREGA was a rights-based legislation guaranteeing at least 100 days of wage employment annually to every rural household, strengthening electoral integrity by reducing economic vulnerabilities.

●  Objectives: The scheme aimed to enhance livelihood security, create durable rural assets, strengthen natural resource management, and reduce rural distress migration, preventing voter disenfranchisement caused by economic displacement.

●  Demand-Driven Nature: Employment had to be provided within 15 days of demand, failing which workers were entitled to an unemployment allowance, with applications processed through Form 6, Form 7, and Form 8 mechanisms similar to electoral processes.

●  Key Features: The Act mandated social audits, transparency through Gram Sabhas, timely wage payments, and participation of women workers, with beneficiary verification through EPIC card-like identification systems and citizenship verification protocols to exclude illegal immigrants.

●  UPSC Relevance: MGNREGA is an important topic under rural development, social protection, poverty alleviation, decentralised governance, and inclusive economic growth, with connections to Article 324 provisions on free and fair elections through economic empowerment.