01 Read
What happened
The Vikaaskhiit Bharat-Gramin Rojgar Mission (VB-GRAM JI) replaced MGNREGA in December 2025. Key changes include shifting from rights-based to centrally-allocated scheme, reducing guaranteed work from 100 to 60 days during agricultural season, increasing state cost-sharing from 10% to 40%, ending universal coverage, and requiring central notification of eligible areas. Congress opposes the law, citing dismantling of employment guarantee rights. Rural Development Minister Shivraj Singh Chouhan defended the reform as addressing structural flaws.
02 Understand
Why it matters
VB-GRAM JI represents a fundamental shift from MGNREGA's demand-driven employment guarantee to a supply-constrained centrally-sponsored scheme. The transformation eliminates the constitutional right to work that MGNREGA embodied under Article 41 (Directive Principles). The new law's Section 4(5) converts statutory guarantee into annual allocations, while Section 5(1) empowers center to notify eligible areas, ending universal coverage. The 40% state cost-sharing burden (Section 22(2)) creates fiscal stress—estimates suggest states would bear additional ₹31,000 crore if applied in FY25. The 60-day restriction during agricultural season removes the disciplining effect MGNREGA had on rural wages, potentially exposing laborers to monopsonistic exploitation. Critics argue this violates cooperative federalism as no state consultation occurred before passage. The rushed legislative process—Lok Sabha approval on December 16, 2025, with presidential assent in three days—bypassed standing committee review. While the law promises 125 guaranteed days and digital integration, actual MGNREGA delivery averaged only 46-50 days historically, making the increase largely symbolic. The shift reflects broader tension between rights-based entitlements and fiscal consolidation imperatives.
Remember + Why it matters
The key recall facts and exact examiner angle for UPSC CSE are in the Crux app.
01
Key figure and date from this topic
02
Specific number or threshold to remember
03
Policy or regulatory implication
Read + Understand free forever · 30-day free trial