Bill No. 197 of 2025 proposes a comprehensive overhaul of India’s rural employment framework through the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin): VB—G RAM G Bill, 2025, aligned with the national vision of Viksit Bharat @2047. The Bill seeks to repeal the Mahatma Gandhi NREGA, 2005 and replace it with an enhanced statutory guarantee of 125 days of wage employment per financial year for every rural household whose adult members volunteer for unskilled manual work. It emphasises convergence, saturation, and whole-of-government planning, with Gram Panchayats as the core planning and execution units, supported by digital, geospatial, and monitoring systems. States must notify schemes within six months, implemented as Centrally Sponsored Schemes with defined fund-sharing ratios and objective-based allocations. The Bill provides for unemployment allowance if work is not provided within prescribed timelines, special relaxations during calamities, strengthened transparency and social audits, and institutional mechanisms for monitoring and grievance redressal. It aims to transition rural development towards growth-oriented infrastructure, livelihood security, and resilience.
Bill No. 197 of 2025
THE VIKSIT BHARAT—GUARANTEE FOR ROZGAR
AND AJEEVIKA MISSION (GRAMIN): VB—G RAM G
(विकसित भारत—जी राम जी) विधेयक, 2025
STATEMENT OF OBJECTS AND REASONS
Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin): VB—G RAM G (विकवित भारत—जी राम जी) Bill, 2025 is proposed to be introduced with the following background, object and reasons.
2. Post-independence rural development policies in India focused on addressing poverty, improving agricultural productivity, absorbing surplus and under-employed rural labour through various wage employment schemes, strengthening rural infrastructure, etc. Over the decades, the approaches have evolved, ranging from community development programs to employment generation schemes to uplift rural communities. The nature of rural employment generation schemes has undergone continuous change based on the evolving socio-economic scenario.
3. India’s rural employment schemes have evolved through several phases, starting with early programs, like, the Rural Manpower Programme (1960s) and Crash Scheme for Rural Employment (1971). In the 1980s, the National Rural Employment Programme and Rural Landless Employment Guarantee Programme were launched, later merged into Jawahar Rozgar Yojana in 1993 which consolidated into the Sampoorna Grameen Rozgar Yojana in 1999, to streamline structured rural employment efforts. The Employment Assurance Scheme was introduced in 1993 to provide work during agricultural lean seasons. The Food for Work Programme, initiated in 1977-78 and later expanded as the National Food for Work Programme in 2004, provided food grains as wages for manual labour on public works, targeting most backward districts to improve both food security and employment. Notably, the Maharashtra Employment Guarantee Act, 1977 provided right to work to adult members of every rural household who volunteered to do unskilled manual work, thus bringing in the concept of a statutory right.
4. While the earlier initiatives offered some relief to rural households, their scale and resources remained limited in relation to the broader challenges of unemployment and poverty in rural India. It was in this background that, in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, (Mahatma Gandhi NREGA) was enacted to provide a statutory framework for employment generation in rural areas.
5. Over the past twenty years, Mahatma Gandhi NREGA has provided a guaranteed wage-employment to rural households ensuring wage income; however, further strengthening has become necessary in view of the significant socio-economic transformation witnessed in the rural landscape driven by widespread coverage of the social security interventions and saturation-oriented implementation of major Government schemes. Similarly, rural connectivity, rural housing, electrification, financial inclusion and digital access have deepened, the workforce has diversified, and aspirations have shifted towards better incomes, growth-oriented infrastructure, sustainable livelihoods and greater climate resilience.
6. To cater to the changing aspirations, stronger convergence is required to establish an integrated, Whole-of-Government rural development framework covering several complementary Government schemes. It is essential that rural infrastructure creation must transition from fragmented provisioning to a coherent and future-oriented approach and it is also essential that resources are distributed in a fair manner to reduce disparities and promote inclusive growth across all rural areas of the country based on objective parameters.
7. As national development advances, rural development programs require periodical revision to remain aligned with emerging needs and further aspirations. In the vastly changed circumstances of today, a transformational approach to rural development is essential to achieve the objectives of Viksit Bharat @2047. The expanding scale of development interventions is expected to create additional employment opportunities for rural households. It is imperative to engage the rural workforce more effectively to support the vision of Viksit Bharat, while empowering them through enhanced livelihood gurarantee. Therefore, the Government has resolved to enhance the wage-employment guarantee for rural households from one hundred days to one hundred and twenty-five days per financial year for anchoring rural asset creation through the enactment of an appropriate Act.
8. The proposed Bill is titled the “Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin): VB—G RAM G (विकवित भारत—जी राम जी) Bill, 2025” to establish a rural development framework aligned with the national vision of Viksit Bharat @2047, by providing a statutory guarantee of one hundred and twenty-five days of wage employment in every financial year to every rural household whose adult members volunteer to undertake unskilled manual work; to promote empowerment, growth, convergence and saturation for a prosperous and resilient rural Bharat.
9. The salient features of the proposed Bill are as follows:—
(a) The primary objective of the Bill is to align the rural development framework with the national vision of Viksit Bharat @2047 by providing an enhanced statutory wage-employment guarantee of one hundred and twenty-five days in each financial year to such rural households whose adult members volunteer to undertake unskilled manual work, thereby enabling them to participate more effectively in the expanded livelihood security framework.
(b) In view of the enhanced wage-employment guarantee for the rural workforce, it is also crucial to facilitate the availability of farm labour, especially during the peak agricultural season. In this context, the Bill shall have a provision to empower the States to notify in advance, certain duration, covering peak sowing and harvesting seasons, during which execution of works under this Bill will not be undertaken.
(c) The focus shall be on empowerment, growth, convergence and saturation with Gram Panchayats as the primary institutions for participatory planning and execution, backed by appropriate professional and technical capacity.
(d) The convergence, saturation-driven planning and whole of Government delivery shall be institutionalised through integration of Viksit Gram Panchayat Plans with the PM Gati Shakti to address the varying needs of Gram Panchayats, and powered by geospatial systems, digital public infrastructure, District and State planning mechanisms, with such plans aggregated at the Block, District, State and consolidated into Viksit Bharat National Rural Infrastructure Stack.
(e) Every State Government shall prepare a Scheme for giving effect to the guarantee proposed under this Bill, within a period of six months from the date of the commencement of the Act and that shall be implemented as a Centrally Sponsored Scheme.
(f) The Central Government shall make normative allocation to each State, to be estimated based on objective parameters, as prescribed in the rules. Further, expenditure in excess of the approved normative allocation shall be the responsibility of the State Governments.
(g) Special relaxations shall be permissible during natural calamities or extraordinary circumstances as decided by the Central Government, enabling temporary modifications to the provisions for timely response and relief.
(h) The wage rates for unskilled manual work shall be notified by the Central Government for the purpose of this legislation. Until such time as separate rates are notified, the wage rates notified under the Mahatma Gandhi NREGA shall be deemed to be the applicable rates.
(i) If an eligible applicant is not provided work as per the provisions of this Bill within the prescribed time limit, it will be obligatory on the part of the State Government to pay unemployment allowance at the prescribed rate.
(j) The Central Gramin Rozgar Guarantee Council and the State Gramin Rozgar Guarantee Councils shall be constituted for review, monitoring and effective implementation of the provisions of the legislation in their respective areas. Steering committees at Central and State Level shall be constituted to recommend on matters concerning normative allocations, convergence and other such matters.
(k) Provision for transparency and accountability shall be ensured through Biometric authentication, spatial technology-enabled planning, mobile and dashboard-based monitoring, and weekly public disclosure systems. The social audit mechanism shall be strengthened.
(m) Provisions for Minimum features of the Scheme to be made under the Bill, have been laid down in the Bill.
10 . The Bill seeks to achieve the above objectives.
NEW DELHI;
The 13th December, 2025.
SHIVRAJ SINGH CHOUHAN.
Notes on clauses
Clause 1 of the Bill provides for the short title and the commencement of the Bill.
Clause 2 of the Bill provides for definitions of terms and expressions used in the Bill.
Clause 3 of the Bill provides for the requirement that each State Government shall, notify, within six months of commencement, make a Scheme consistent with the Bill and the Scheme to be implemented as a Centrally Sponsored Scheme.
Clause 4 of the Bill provides for Viksit Gram Panchayat Plans as the origin of all works, their consolidation into Block, District and State plans, and the aggregation of the Viksit Bharat National Rural Infrastructure Stack, the four thematic domains of works, and categorisation of Gram Panchayats.
Clause 5 of the Bill provides for the statuory guarantee of not less than one hundred and twenty-five days of wage employment in a financial year to every rural household volunteering to do unskilled manual work and further provides for guarantee of wages by a person who has done work under the scheme.
Clause 6 of the Bill provides that no works shall be undertaken during notified peak agricultural seasons aggregating to sixty days to facilitate farm-labour availability in peak agricultural seasons.
Clause 7 of the Bill provides that the Central Government may decide special relaxations during natural calamities, or extraordinary circumstances on recommendation by the State Government.
Clause 8 of the Bill provides for the requirement that every State shall make a Scheme to provide guaranteed wage-employment to every rural household to give effect to the Bill.
Clause 9 of the Bill provides the conditons for providing guaranteed employment.
Clause 10 of the Bill provides for the Central Government to notify the wage rate for unskilled manual work.
Clause 11 of the Bill provides for entitlement to unemployment allowance if employment is not provided within fifteen days, at prescribed rates, to be paid by the State Government.
Clause 12 of the Bill provides for the Central Government to notify the Central Gramin Rozgar Guarantee Council and its composition, tenure and terms and conditions of the Chairperson and non-official members by rules.
Clause 13 of the Bill provides that the State Government to constitute the State Gramin Rozgar Guarantee Council, its composition, terms and conditions of the Chairperson and non-official members by rules.
Clause 14 of the Bill provides for the constitution of a National Level Steering Committee to recommend normative allocations, advise on inter-ministerial convergence and provide high-level oversight.
Clause 15 of the Bill provides for the constitution of a State Level Steering Committee to provide operational guidance, coordination and monitoring of implementation of the Scheme.
Clause 16 of the Bill provides that Panchayats at district, intermediate and village levels shall be the principal authorities for planning, implementation and monitoring of the Scheme and defines their respective roles.
Clause 17 of the Bill provides for the designation of the District Programme Coordinator, sets out the Coordinator’s responsibilities, including preparation of the district plan, supervision, inspections, grievance redress and aggregate district plan.
Clause 18 of the Bill provides for the appointment of a Programme Officer at the intermediate level, and his functions.
Clause 19 of the Bill provides for the responsibilities and functions of the Gram Panchayat, including registration of households, issuing Rozgar Guarantee Cards, preparing Viksit Gram Panchayat Plans, allocation of works and execution of works.
Clause 20 of the Bill provides that the Gram Sabha shall monitor and review the execution of works, conduct regular social audits and have access to all records required for audit.
Clause 21 of the Bill provides for the State Government to provide necessary staff and technical support to District Programme Coordinators and Programme Officers.
Clause 22 of the Bill provides that the Scheme shall be a Centrally Sponsored Scheme, specifies the fund-sharing ratios, determination of State-wise normative allocations and the Central and State components of eligible expenditure.
Clause 23 of the Bill provides transparency and accountability, the responsibilities of the District Programme Coordinator and implementing agencies for proper fund utilisation, accounting, payments of wages and unemployment allowances by rules and disposal of complaints.
Clause 24 of the Bill provides for technology enabled transparency and public accountability, including biometric authentication, geospatial planning, mobile or dashboard monitoring, weekly public disclosures and strengthened social audit mechanisms.
Clause 25 of the Bill provides for a time-bound multi-tier grievance redressal mechanism at the Gram Panchayat, Block and District levels.
Clause 26 of the Bill provides for audit arrangements of Schemes at all levels in consultation with the Comptroller and Auditor-General of India and for prescribed account maintenance.
Clause 27 of the Bill provides for penalties for contravention of the Bill, with the penalty up to ten thousand rupees.
Clause 28 of the Bill provides for the Central and State Governments to delegate powers by notification to subordinate officers.
Clause 29 of the Bill provides for the Central Government’s power to give directions to States for effective implementation of Bill and to investigate complaints and, if necessary, suspend fund releases and order remedial measures.
Clause 30 of the Bill provides for overriding effect.
Clause 31 of the Bill provides for the power of the Central Government to amend Schedule.
Clause 32 of the Bill provides for immunity from suit, prosecution or legal proceedings for public servants acting in good faith under the Bill.
Clause 33 of the Bill provides for the Central Government to make rules subject to previous publication and lists specific matters the rules may cover.
Clause 34 of the Bill provides for the State Government to make rules consistent with the Bill and Central rules and lists specific matters for State rules.
Clause 35 of the Bill provides for the procedure for laying Central rules before Parliament and State rules before State Legislatures and for parliamentary modification or annulment.
Clause 36 of the Bill provides for removal of difficulties.
Clause 37 of the Bill provides for the repeal of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, from the appointed date and transitional provisions.
FINANCIAL MEMORANDUM
The Bill seeks to introduce the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin): VB—G RAM G (विकवित भारत—जी राम जी) BILL, 2025, in the Parliament and to repeal the Mahatma Gandhi National Rural Employment Guarantee Act, 2005.
1. Sub- clause (1) of clause 5 of the Bill provides that the State Government shall, in such rural area in the State, as may be notified by the Central Government, provide to every household whose adult members volunteer to do unskilled manual work, not less than one hundred and twenty-five days of guaranteed employment in a financial year in accordance with the Scheme made under this legislation.
This will require a large number of works to be taken up under the Scheme to be prepared in each State where the legislation is to be implemented. This will entail expenditure on the execution of works, covering both wage and material components, in accordance with clause 22 of the Bill.
2. Sub-clauses (5) and (6) of clause 4 of the Bill provide that the Central Government shall determine the State-wise normative allocation for each financial year, based on objective parameters as may be prescribed. Any expenditure incurred by a State in excess of its normative allocation shall be borne by the State Government in a manner and procedure as may be prescribed.
3. Clause 10 of the Bill provides that the Central Government may, by notification, specify the wage rate for the purposes of this Bill, which shall apply to all unskilled manual work provided under the Scheme; different rates may be notified for different areas.
4. Sub-clause (1) of clause 11 of the Bill provides that if an applicant for employment under the Scheme is not provided such employment within fifteen days of receipt of his application seeking employment or from the date on which the employment has been sought in the case of an advance application, whichever is later, he shall be entitled to a daily unemployment allowance.
5. Sub-clause (2) of clause 11 of the Bill provides that the unemployment allowance shall be paid to applicants of a household subject to a legal guarantee of the household at such rate as may be specified by the State Government, by notification, in consultation with the State Council provided that no such rate shall be less than one-fourth of the notified wage rate for the first thirty days during the financial year and not less than one-half of the wage rate for the remaining period of the financial year.
6. Sub-clause (3) (d) of clause 11 of the Bill provides that the liability of the State Government to pay unemployment allowance to a household during any financial year shall cease, as soon as the household of the applicant has earned as much from the wages and unemployment allowance taken together which is equal to the wages for one hundred and twenty-five days of work during the financial year.
7. Clause 22 of the Bill provides for the nature of the Scheme and the funding pattern as follows:—
(1) The Scheme implemented under this Bill, shall be a Centrally Sponsored Scheme.
(2) For the purposes of this Bill, the fund-sharing pattern between the Central Government and the State Governments shall be 90:10 for the North Eastern States and Himalayan States and Union territory (Uttarakhand, Himachal Pradesh and Jammu and Kashmir), and 60:40 for all other States and Union territorries with legislature.
(3) For the Union territories without legislature, the Central Government shall bear the entire expenses of the Scheme in the manner as may be prescribed.
(4) The Central Government shall determine the State-wise normative allocation for each financial year, based on objective parameters as may be prescribed.
(5) Any expenditure incurred by a State in excess of its normative allocation shall be borne by the State Government in such manner and procedure as may be prescribed.
(6) In accordance with the State-wise normative allocation determined under this Bill, the share of the Central Government shall include expenditure towards—
(a) payment of wages for unskilled, semi-skilled and skilled labour employed under the Scheme;
(b) the material component of works, subject to provisions in Schedule I;
(c) such administrative expenses as may be specified by the Central Government, including salary and allowances of programme officers and supporting staff, administrative expenses of the Central Council, facilities required under Schedule II, and such other items as may be prescribed by the Central Government.
(7) In accordance with the State-wise normative allocation determined under this Bill, the share of the State Government shall include expenditure towards—
(a) payment of wages for unskilled, semi-skilled and skilled labour employed under the Scheme;
(b) the material component of works, subject to provisions in Schedule I;
(c) such administrative expenses as may be specified by the Central Government, including salary and allowances of programme officers and supporting staff, administrative expenses of the State Council, facilities required under Schedule II, and such other items as may be prescribed by the Central Government.
(8) The State Government shall bear the expenditure towards unemployment allowance and delay compensation as may be prescribed by the State Government.
8. The expenditure under the Scheme will depend on the number of persons reporting for work, wage rate and the material and administrative components of the work. If the legislation is implemented across the entire country, the total estimated annual requirement of funds on wage, material and administrative components is ₹1,51,282 crore (Rupees one lakh fifty-one thousand two hundred eighty-two crore), including the State share. Of this, the estimated Central share is ₹95,692.31 crore (Rupees ninety-five thousand six hundred ninety-two crore and thirty-one lakh).
9. Upon repeal of the Mahatma Gandhi National Rural Employment Guarantee Act,2005, it will be necessary to settle central pending liabilities payable to the States and union territories, up to the closure of Financial Year 2025-2026 or until the date of commencement of the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin): VB—G RAM G (विकवित भारत—जी राम जी) BILL, 2025 comes into force, whichever is later.
MEMORANDUM REGARDING DELEGATED LEGISLATION
Clause (1) of clause 33 of the Bill empowers the Central Government to make rules for carrying out the provisions of the proposed legislation. Sub-clause (2) of the said clause specifies the matters in respect of which such rules may be made. These matters, inter alia, include––
(a) State-wise normative allocation for each financial year, based on objective parameters under sub-section (5) of section 4; (b) manner and procedure to bear the excess expenditure and its parameters under sub-section (6) of section 4; (c) the composition, terms and conditions of appointment, tenure and procedure of meeting under sub-section (3) of section 12; (d) the detailed functions, responsibilities and modalities under sub-section (4) of section 12; (e) terms and conditions of appointment of officials of National Level Steering Committee under sub-section (2) of section 14; (f) manner to redress the grievance under clause (d) of sub-section (3) of section 17; (g) manner of conducting social audit by Gram Sabha under sub-section (2) of section 20; (h) manner to bear the expenses of Scheme under sub-section (3) of section 22; (i) objective parameters to determine the State-wise normative allocation under sub-sections (4) of section 22; (j) manner and procedure to bear the excess expenditure under sub-section (5) of section 22; (k) other items under clause (c) of sub-section (6) of section 22; (l) other items under clause (c) of sub-section (7) of section 22; (m) expenditure towards unemployment allowance and delay compensation under sub-section (8) of section 22; (n) manner of payments of wages and unemployment allowances under sub-section (4) of section 23; (o) social audit mechanism, and the adoption of such other technology-enabled systems under clause (e) of section 24; (p) manner to lay down the procedure for disposal of complaints under sub-section (1) of section 25; (q) the manner of transfer and vesting under sub-section (5) of section 37; (r) any other matter which is to be, or prescribed or in respect of which provision is to be made by rules for carrying out the provisions of this Act.
2. Sub-clause (1) of clause 34 of the Bill empowers the State Government to make rules for carrying out the provisions of the Bill. Sub-clause (2) of the said clause specifies the matters in respect of which such rules may be made. These matters, inter alia, include––
(a) terms and conditions of eligibility under sub-section (2) of section 11; (b) terms, conditions, time, place and procedure of meeting and quorum under sub-section (2) of section 13; (c) manner of maintaining proper books and accounts under sub-section (2) of section 23; (h) form and manner to maintain the accounts of the Scheme under sub-section (2) of section 26;
3. The matters in respect of which rules may be made are matters of procedure or administrative detail and it is not practicable to provide for them in the Bill itself. The delegation of legislative power is, therefore, of a normal character.
LOK SABHA
A
BILL
to establish a rural development framework aligned with the national vision of Viksit Bharat @2047, by providing a statutory guarantee of one hundred and twenty-five days of wage employment in every financial year to every rural household whose adult members volunteer to undertake unskilled manual work; to promote empowerment, growth, convergence and saturation for a prosperous and resilient rural Bharat; and for matters connected therewith or incidental thereto.
