VB-G RAM G Act 2025: Key Draft Rules and Criticisms
The draft rules for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act 2025, or VB-G RAM G, were released for public comment. These rules introduce a new framework for fund allocation to states and Union Territories (UTs), replacing the MGNREGA scheme starting July 1, 2025.
Fund Allocation and Criteria
- The Sixteenth Finance Commission's horizontal devolution formula will be used for "normative" fund allocation to states.
- From FY27, a portion of this allocation will be based on performance criteria, including:
- Timely wage payments
- Compliance with social audit requirements
- Percentage of work completion within a financial year
- Additional performance indicators specified by the Centre
- For UTs, allocations will be based on performance or other parameters set by the Centre.
Funding Structure and Expenditure
- The Centre and states will share funds in a 60:40 ratio, while north-eastern and hilly states will receive a 90:10 ratio.
- Any expenditure exceeding the annual "normative" allocation must be covered by the respective state or UT.
- A Management Information System (MIS) will monitor all expenses, ensuring transparency and allowing component-wise reporting.
Criticism and Justifications
Civil society groups have criticized the "normative" allocation approach, arguing it allows for arbitrary fund distribution, contrary to the demand-driven model of MGNREGA. The Centre counters that it aligns VB-G RAM G with other central schemes, aiming to avoid unpredictable allocations.
Implementation Framework
- The draft rules emphasize a robust digital architecture for implementation, building on MGNREGA's existing systems.
- This shift represents a move from a demand-driven model to a normative allocation framework.
Public Engagement
Comments on the draft rules are invited by June 21, 2025, allowing stakeholders to provide feedback on the proposed changes.
