VB-G RAM G represents decisive shift in India’s rural employment policy: Economic survey
Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, saw an increase in women’s participation from 48 per cent to 58.1 per cent between FY14 and FY25
The Economic Survey 2025-26 on Thursday underlined that the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, or VB-G RAM G, represents a decisive shift in India’s rural employment policy while strengthening accountability, infrastructure outcomes, and income security.
"The VB-G RAM G Act is a comprehensive statutory overhaul of MGNREGS, aligning rural employment with the long-term vision of Viksit Bharat 2047. While MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Act) achieved significant gains in participation, digitisation, and transparency over time, persistent structural weaknesses limited its effectiveness. The new Act builds on past improvements while addressing their shortcomings through a modern, accountable, and infrastructure-focused framework," it noted.
The Act also saw an increase in women’s participation from 48 per cent to 58.1 per cent between FY14 and FY25, Aadhaar seeding expanded sharply, the Aadhaar-Based Payment System was widely adopted, and electronic wage payments became nearly universal, it said.
Monitoring of works also improved, with a large expansion in geo-tagged assets and a growing share of individual assets created at the household level.
The government added that VB G-RAM G strengthens administrative capacity by increasing the administrative expenditure ceiling from 6 percent to 9 percent of total expenditure, supporting staffing, training, remuneration, and technical capabilities. This shift towards a professional, well-supported system is expected to improve planning, execution, and service delivery while reinforcing accountability at all levels.
The survey also quoted NABARD's latest Rural Economic Conditions and Sentiments Survey (RECSS), which showed a broad-based strengthening of rural economic fundamentals, with robust consumption, high income growth, rising investment, improved formal credit access, lower inflation perceptions, better loan repayment conditions, and strong satisfaction with infrastructure.
"All assets created under VB G-RAM G are aggregated into the Viksit Bharat National Rural Infrastructure Stack, ensuring a unified and coordinated development strategy. By linking local works to broader national priorities, the Act facilitates both immediate support for rural livelihoods and long-term strategic infrastructure outcomes," it said.
Under the Act, the Centre is empowered to investigate complaints, suspend fund releases in cases of serious irregularities, and direct corrective measures as necessary.
Over time, increasing incomes, enhanced connectivity, widespread digital adoption, and diversified livelihoods have transformed the nature of rural employment requirements, the survey said, emphasising both the programme's achievements and the need to reassess its design and aims.
