Question 1

The VB-GRAMG Act is fully funded by the Central Government just like MGNREGA for wage payments.

Accepted Answer

Unlike MGNREGA which fully funded wages centrally (100:0), VB-GRAMG requires states to share the wage burden in a 60:40 ratio.

Question 2

The new Act guarantees more employment because it is still an open-ended, demand-driven scheme.

Accepted Answer

While days increased to 125, the scheme is now based on 'normative allocation', meaning total state budgets are capped based on formulas, effectively ending the open-ended legal entitlement.

Question 3

Consider the following statements regarding the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025: 1. It guarantees 125 days of wage employment per rural household annually. 2. The Central Government bears 100 percent of the wage costs for unskilled manual labour. 3. It operates on a strict open-ended, demand-driven funding model. How many of the statements given above are correct?

Accepted Answer

(a) Only one — Statement 1 is correct: The Act increases the guarantee from 100 to 125 days. Statement 2 is incorrect: The wage funding ratio has been changed to 60:40 (Centre:State) for most states. Statement 3 is incorrect: The new Act shifts the scheme from a demand-driven model to a normative allocation framework. Therefore, only statement 1 is correct.

Question 4

Match List I (Scheme Characteristic) with List II (Associated Mechanism) regarding the transition from MGNREGA to VB-GRAMG: List I: A. Wage Funding under MGNREGA, B. Wage Funding under VB-GRAMG, C. Resource Model of MGNREGA, D. Resource Model of VB-GRAMG. List II: 1. 60:40 (Centre:State), 2. 100:0 (Centre:State), 3. Normative Allocation, 4. Demand-driven.

Accepted Answer

(a) A-2, B-1, C-4, D-3 — MGNREGA wage funding was entirely borne by the Centre (A-2). Under VB-GRAMG, this shifted to a 60:40 ratio (B-1). MGNREGA was famous for its open-ended, demand-driven nature (C-4), while VB-GRAMG introduces capped normative allocation (D-3).

Question 5

Assertion (A): The enactment of the VB-GRAMG Act 2025 significantly increases the fiscal liability of state governments compared to the previous rural employment regime. Reason (R): The VB-GRAMG Act changes the Centre-State wage funding ratio for unskilled manual labour from 100:0 to 60:40 for general category states. Select the correct answer using the code given below:

Accepted Answer

(a) Both A and R are true and R is the correct explanation of A — Assertion (A) is true as states now have to bear a larger share of the financial burden for rural employment. Reason (R) is also true and directly explains why A is true: states must now fund 40 percent of the wage cost, whereas under MGNREGA, the Centre covered 100 percent of the wage cost.

Parliament Enacts VB-GRAMG Act Replacing MGNREGA

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