NEW DELHI: The Economic Survey has endorsed the newly enacted Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), or VB-G RAM G Act, 2025, citing declining work demand under the MGNREGS as the reason for the overhaul. Tabled in Parliament on Thursday, the Survey said MGNREGS, enacted in 2005, provided wage employment, stabilised rural incomes and created infrastructure, but rural employment needs have changed.
“While MGNREGS has long served as a critical safety net for rural households, recent trends reveal a notable decline in work demand,” the Survey said. Person-days fell from a pandemic peak of 389.09 crore in FY21 to about 183.77 crore in FY26 up to December 31, 2025, a decline of more than 53 per cent.
The decline coincided with a fall in rural unemployment from 3.3% in 2020-21 to 2.5% in 2023-24, suggesting wider access to non-farm jobs. The survey said this pointed to stronger rural economic conditions and reduced reliance on MGNREGS. Women’s participation rose from 48 per cent to 58.1% between FY14 and FY25, Aadhaar seeding expanded, and electronic wage payments became nearly universal.
However, structural issues persisted, including work not executed on the ground, gaps between expenditure and physical progress, the use of machines in labour-intensive works, and the bypassing of digital attendance systems.
“Against this backdrop, the government enacted the RAM G Act, 2025,” the survey said.