Overview
- Parliament has enacted the VB-G RAM G Act, which is now in force after presidential assent on December 21 and replaces MGNREGA with a 125-day work guarantee per rural household.
- The scheme shifts to a 60:40 Centre:State cost split, with a higher central share for north-eastern and Himalayan states.
- An SBI Research simulation finds states would collectively gain about ₹17,000 crore versus the seven-year average allocation under MGNREGA, with Uttar Pradesh and Maharashtra among the biggest projected gainers.
- The analysis models only the Centre’s share using seven equity-and-efficiency parameters and indicates most states could be net gainers, with only two showing minimal losses in the hypothetical scenario.
- The law moves from a demand-driven to a normative allocation framework and introduces digital transfers, weekly wage payments and up to 60 days when states may pause public works, even as opposition parties protest the name change and potential state burden.