Centre notifies Draft Rules under VB–G RAM G Act, seeks public feedback by June 20
The Central Government notified draft rules under the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G), inviting public objections and suggestions by June 20, 2026.
The draft rules establish that, for each financial year, the Centre will determine a "normative allocation" of funds for every state based on objective parameters specified in the rules — anchored to the 16th Finance Commission formula.
This marks a departure from the demand-driven, expenditure-reimbursement model of MGNREGA, where releases were triggered by states' actual wage payments rather than a pre-determined normative ceiling.
The rules also specify the transition mechanism from MGNREGA to VB-G RAM G, including provisions for existing works, pending wage payments, and the reissuance of smart job cards.
The 30-day public feedback window reflects the Ministry's adherence to pre-legislative consultation norms recommended by the Pre-Legislative Consultation Policy of 2014.
Subordinate Legislation and Rule-Making Powers
Parliament frequently delegates rule-making authority to the executive through enabling provisions in parent Acts. Such delegated legislation — called subordinate or secondary legislation — allows the executive to fill in operational details without returning to Parliament for each amendment.
Key Details
- Rules made under an Act derive their authority from the parent statute; they must be "laid before" Parliament (typically within 30 days of notification) under the Statutory Instruments Act provisions and each Act's specific laying requirement.
- Section 23 of most Central Acts requires that rules be "laid on the table" of both Houses; Parliament may modify or annul them within the prescribed period.
- Subordinate legislation cannot exceed the scope granted by the parent Act; courts may strike down ultra vires rules under Articles 13 and 226.
- Draft rules (as opposed to final rules) are increasingly circulated for pre-publication comment — a practice institutionalised by the Ministry of Law's 2014 policy.
The VB-G RAM G draft rules are subordinate legislation under the parent Act, 2025. The Centre's decision to invite public feedback before finalisation reflects the pre-legislative consultation norm — and gives states, civil society, and implementing agencies an opportunity to flag implementation gaps before the July 1, 2026 commencement.
Normative vs. Demand-Based Fiscal Transfers
India's intergovernmental transfer architecture distinguishes between formula-based (normative) transfers and demand-triggered reimbursements. The choice of mechanism has significant implications for state fiscal planning and programme predictability.
Key Details
- Under MGNREGA, the Centre reimbursed states for wages actually paid and materials procured — making transfers reactive to demand but exposing states to delayed reimbursements when the Centre's budget was constrained.
- Normative allocation, by contrast, pre-assigns a state's share of the national outlay based on objective criteria (population, poverty ratio, backwardness indices, or Finance Commission parameters), enabling advance budget planning.
- The 15th Finance Commission introduced performance-linked tied grants for local bodies alongside formula-based untied grants — a precedent now being applied to social-sector scheme allocations.
- Article 275 of the Constitution allows Parliament to make grants to states "in need of assistance" — normative rules provide the framework for determining need.
By prescribing that normative allocations will be determined via objective parameters (linked to the 16th FC formula), the draft rules shift VB-G RAM G from an open-ended entitlement-reimbursement model to a capped, formula-driven transfer — potentially improving Centre's fiscal predictability while requiring states to prioritise implementation within their normative ceiling.
Pre-Legislative Consultation Policy (2014)
The Ministry of Law and Justice introduced a Pre-Legislative Consultation Policy in 2014, recommending that all proposed legislation and subordinate legislation be placed in the public domain for a minimum of 30 days before introduction or notification, accompanied by a summary of the proposal and key stakeholder concerns.
Key Details
- Policy objective: To widen participation in law-making, reduce implementation resistance, and improve legislative quality.
- Applies to both Bills and draft rules/regulations made under existing Acts.
- Departments are required to publish drafts on their websites and the India Code portal; a summary of received comments and the government's response should ideally be published.
- While the policy is not legally binding, non-compliance has been cited by courts and parliamentary committees in review proceedings.
The 30-day public feedback window (June 20–21 deadline) for the VB-G RAM G draft rules is consistent with the 2014 policy — and is particularly significant given the scheme's scale: it will replace MGNREGA, which covered approximately 15 crore rural households, from July 1, 2026.
Transition Architecture: MGNREGA to VB-G RAM G
The legislative and administrative challenge of succeeding a large welfare programme involves continuity of entitlements, data migration, and grievance redressal for pending dues — all of which the transition provisions in the draft rules must address.
Key Details
- MGNREGA was enacted in 2005 and implemented from February 2006; it will have operated for approximately 20 years at repeal.
- VB-G RAM G raises employment entitlement from 100 to 125 days; introduces Viksit Gram Panchayat Plans (VGPPs) as convergence-based local development plans replacing the earlier demand-driven household application model.
- Existing MGNREGA job cards will be replaced by new smart job cards; beneficiary databases must be merged with the new scheme's digital infrastructure (linked to PM Gati Shakti and real-time dashboards).
- Pending MGNREGA wage payments and works-in-progress as of June 30, 2026 will require explicit transition treatment in the final rules.
- Social audits — mandatory at least twice yearly under VB-G RAM G — will serve as the key accountability mechanism for the transition period.
The draft rules' transition provisions directly address the legal and operational continuity risk: any gap in coverage, delay in smart card issuance, or ambiguity in pending-dues settlement could expose rural households to a temporary welfare gap in July 2026.
- Full form: VB-G RAM G = Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin)
- Parent Act: VB-G RAM G Act, 2025 — Presidential assent received December 2025
- Commencement date: July 1, 2026
- MGNREGA repeal date: July 1, 2026 (simultaneous with VB-G RAM G commencement)
- Public feedback deadline: June 20–21, 2026
- Allocation principle: "Central Government shall, for each financial year, determine the normative allocation of the funds, for every State, based on the objective parameters specified in these rules"
- 16th Finance Commission award period: 2026–27 to 2030–31 (Chair: Dr. Arvind Panagariya)
- States' share of divisible pool: 41% (recommended by both 15th and 16th FCs)
- Employment guarantee: 125 days per rural household per year (up from 100 days under MGNREGA)
- MGNREGA operational life: ~20 years (February 2006 – June 2026)
- NLSC: 16-member National Level Steering Committee; must include 5 state representatives