In a significant legislative move, the Lok Sabha on Thursday, December 18, 2025, passed a new bill aimed at overhauling India's flagship rural employment guarantee scheme. The Garib Kalyan Rojgar Abhiyan Mahatma (G-RAM) Bill, 2025, was introduced by Union Minister Shivraj Singh Chouhan to replace the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
Key Provisions of the G-RAM Bill
The new legislation fundamentally changes the mechanism of providing employment support. Instead of guaranteeing work on demand, the G-RAM scheme will provide direct financial assistance to eligible households. The bill proposes transferring a fixed amount of money directly into the bank accounts of beneficiaries, moving away from the manual wage-for-work model of MGNREGA.
During the debate, Minister Chouhan emphasized that the shift to a Direct Benefit Transfer (DBT) system would enhance efficiency, reduce delays in wage payments, and curb leakages. He argued that the old system was often plagued by administrative bottlenecks and corruption, which the new cash transfer model aims to eliminate.
Parliamentary Debate and Opposition Concerns
The bill faced strong criticism from opposition members during the discussion. Leaders from the Congress and other parties contended that the government was effectively diluting the legal guarantee of work. They argued that MGNREGA's core strength was its rights-based framework, which assured 100 days of work per household as a legal entitlement.
Opposition MPs expressed fears that replacing a work guarantee with cash transfers could undermine the creation of durable rural assets like ponds, roads, and irrigation channels, which were a byproduct of the old scheme. They also raised concerns about potential misuse of funds and the lack of a mechanism to ensure the cash is used for productive purposes.
Government's Rationale and Future Steps
The government defended the bill by highlighting the challenges in the implementation of MGNREGA. Ministers pointed to issues like fake job cards, incomplete projects, and wage payment delays that have persisted for years. The G-RAM framework, they stated, is designed to provide timely and transparent support to rural families.
With the bill's passage in the Lower House, it will now be sent to the Rajya Sabha for consideration. Given the government's numbers in the upper house, it is expected to clear this final legislative hurdle. Once passed by both Houses and receiving the President's assent, the G-RAM Act will formally replace the nearly two-decade-old MGNREGA, marking one of the most substantial shifts in India's social welfare policy in recent times.
Implications for Rural India
The transition from MGNREGA to G-RAM represents a major philosophical shift in addressing rural unemployment and poverty. While the former was a demand-driven employment program, the latter is a state-driven income support scheme. The success of G-RAM will hinge on the accuracy of beneficiary identification, the robustness of the digital payment infrastructure, and its ability to provide a meaningful safety net without the community assets created by manual labor.
As the debate moves to the Rajya Sabha, all eyes will be on the final shape of the law and the rules that will govern its implementation, which will determine the future of welfare for millions of rural households across India.
