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President Murmu Signs VB-G RAM G Act, Scrapping 20-Year-Old MGNREGA

On 21 Dec 2025, India repealed its demand-driven 100-day rural job guarantee and instituted the VB-G RAM G Act, offering 125 days of work but capping budgets, shifting 40 % of costs to states, and letting Delhi pause the scheme for 60 days each year.

By Naia Okafor-Chen

Focusing Facts

  1. Bill cleared Parliament on 18 Dec 2025 and became law with presidential assent on 21 Dec 2025, officially repealing the 2005 MGNREGA statute.
  2. New funding formula: Centre 60 % / States 40 % nationwide (90:10 for NE & Himalayan states) compared with MGNREGA’s 100 % Centre-funded wages.
  3. The Act empowers the Centre to declare a 60-day annual moratorium on work during peak farming seasons, overriding local demand.

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