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Modi's New Rural Jobs Act Links Income Support to Long-Term Farm Productivity

Prime Minister Narendra Modi has endorsed the new VB-G RAM G Act, 2025, which replaces MGNREGA by framing rural employment as a continuum linking income support with long-term productivity. The law increases guaranteed wage employment to 125 days per household and introduces a revised 60:40 centre-state funding model. Union Minister Shivraj Singh Chouhan criticized the previous MGNREGA scheme as corrupt, while opposition parties protest the changes as diluting employment guarantees. The Act also allows states to regulate work during peak farming seasons, aiming to balance social security with agricultural needs.

Key Points: PM Modi Backs VB-G RAM G Act, Replacing MGNREGA

  • Guaranteed work days increased to 125
  • Centre-state funding revised to 60:40
  • Allows seasonal employment regulation
  • Replaces MGNREGA
2 min read

PM Modi backs VB-G RAM G Act, says new law links income support with long-term rural productivity

PM Modi endorses the VB-G RAM G Act 2025, linking rural income support to asset creation and farm stability, amid opposition criticism.

"treats income support, asset creation, agricultural stability and long-term rural productivity as a continuum – PMO on X"

New Delhi, December 24

Prime Minister Narendra Modi strongly endorsed the newly introduced VB-G RAM G Act, 2025 on Wednesday, stressing it reimagines rural employment by treating income support, asset creation and agricultural stability as a continuous process rather than competing priorities.

The Prime Minister Office (PMO) sharing an article written by Union Agriculture Minister Shivraj Singh Chouhan on X (formerly Twitter), which outlined the rationale and objectives of the new legislation that replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

"In this enlightening article, Union Minister Shri @ChouhanShivraj explains that VB-G RAM G Act, 2025 treats income support, asset creation, agricultural stability and long-term rural productivity as a continuum rather than a trade-off," PMO wrote on X. He added that the Bill was preceded by "extensive consultations with State governments, technical workshops and multi-stakeholder discussions".

Chouhan, in his own post on X, launched a sharp attack on the Congress-led UPA, alleging that MGNREGA had failed to deliver meaningful outcomes. "Under the guise of MGNREGA, the UPA government delivered little to the people except widespread corruption," he said, claiming the new Act seeks to "rectify the serious lapses left behind by the Congress".

The VB-G RAM G Act has already triggered political pushback, with the DMK-led alliance staging protests in Chennai against the law. Several opposition leaders have accused the Centre of diluting the spirit of employment guarantee and undermining federalism through changes in funding and implementation.

According to the provisions of the new Act, the guaranteed wage employment per rural household has been increased to 125 days in a financial year from the existing 100 days, for adult members willing to undertake unskilled manual work. The government has projected this as a significant expansion of social security for rural households.

Section 22 of the Act outlines a revised fund-sharing pattern, with the Centre and states contributing in a 60:40 ratio. For Northeastern states, Himalayan states and Union Territories, including Uttarakhand, Himachal Pradesh and Jammu & Kashmir, the Centre's share will be 90 per cent, with states contributing the remaining 10 per cent.

Another key provision, Section 6, allows state governments to notify in advance a period of up to 60 days in a year during peak agricultural seasons such as sowing and harvesting, when employment under the scheme may be regulated.

- ANI

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Reader Comments

S
Sarah B
As someone who has studied rural economics, the shift from a pure employment guarantee to a continuum model is interesting. The 125 days is an improvement, but the 60-day regulation during peak seasons worries me. What if a family needs work precisely then?
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Priya S
My father is a farmer in Punjab. The idea of linking this with agricultural stability is good on paper. But will the "assets created" actually help farmers like him? Or will it just be more check-dams and roads that get washed away? Need to see ground results.
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Arjun K
The increased days to 125 is a welcome step for rural households. However, the change in funding pattern (60:40) will put immense pressure on already cash-strapped state governments. This feels like centralization, not cooperative federalism.
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Karthik V
Why is every new policy framed as an attack on the previous government? MGNREGA, for all its flaws, was a lifeline during droughts in my village. Instead of just blaming the past, focus on making this new act work for the poorest. Jai Hind.
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Meera T
The 90% central funding for Himalayan states is a positive and necessary move. These regions need special attention. Hoping this leads to better rural infrastructure in hill areas like ours in Uttarakhand. 🏔️

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