The Ministry of Rural Development has released draft Rules under the Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 The Act replaced the Mahatma Gandhi National Rural Employment Guarantee Act, 2005, and provides for guaranteed wage employment to rural households. The VB G RAM G Act will come into effect from July 1, 2026. These draft Rules specify details across areas such as fund allocation, grievance redressal, governance structures, and wage payments.
Key features of the draft Rules include:
▪ Fund allocation to states: The Act provides that the central government will determine a normative allocation of funds for each state based on objective parameters. The draft Rules specify that the central government will use the parameters recommended by the 16th Finance Commission for distribution of central taxes among states, for this purpose. The parameters will be applied for determining interstate distribution as per a methodology determined by the central government. From the second year onward, a portion of the allocation may also be linked to performance criteria, including: (i) timely payment of wages, (ii) compliance with social audit requirements, (iii) percentage of works completed in a year, and (iv) any other performance-related indicator specified by the central government. For union territories, allocation will be based on the performance criteria and such other criteria decided by the central government.
▪ Payment of wages and unemployment allowance: All wages and unemployment allowance will be paid through direct benefit transfer into beneficiaries’ bank or post office accounts. Cash payments are prohibited. However, the central government may make an exemption in extraordinary circumstances.
▪ Governance structure: The Act provides for: (i) a National Level Steering Committee to recommend decisions relating to allocation to states, advise on matters requiring inter-ministerial coordination, and provide high-level oversight, and (ii) a Central Council to monitor implementation and advise the central government. As per the draft Rules, the Steering Committee will be chaired by the Secretary, Department of Rural Development. Members include: (i) officers of the rank joint secretary or above from the central ministries or departments of Panchayati Raj, Environment, Water Resources, Agriculture, and Land Resources, and (ii) five representatives of state governments (of the rank secretary to the state government or above).
▪ The Council will be chaired by the Union Minister for Rural Development. Members include: (i) representatives of union ministries/departments such as labour and employment, panchayat raj, environment, women and child development, environment, social justice and empowerment, and tribal affairs, (ii) six representatives of the department of rural development of state governments, (iii) eight members representing the states, to be nominated by the central government, and (iv) 15 members from Panchayati raj institutions, organisations of workers and disadvantaged groups, also to be nominated by the central government.
Comments are invited until June 21, 2026.
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