Lok Sabha Question No. 1713 (UNSTARRED), answered on 2026-02-10
Subject: Conventions and Protests against VBG RAM G
Ministry: RURAL DEVELOPMENT
Asked by: Smt. Harsimrat Kaur Badal

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 1713 ANSWERED ON 10/02/2026

## CONVENTIONS AND PROTESTS AGAINST VBG RAM G

1713. Smt. Harsimrat Kaur Badal:

Will the Minister of RURAL DEVELOPMENTbe pleased to state:

- (a) whether the Government is aware that MGNREGA workers and unions in Punjab,particularly in Ludhiana district, have announced a series of conventions and protests againstchanges  to  the  VB  G-RAM-G  earlier  Mahatma  Gandhi National Rural Employment Guarantee Act(MGNREGA);
- (b) whether it is a fact that workers' organisations have opposed proposals to alter the existing90:10 Centre-State funding ratio, reduce the role of gram panchayats in selecting and planningwork rather than a legal guarantee of 100 days of work per household, and if so, details thereof;and
- (c) whether  VB  G-RAM-G/MGNREGA  workers  in  Punjab  currently receive wages around Rs346 per day, have reported an actual average of only about 36 days of work annually and aredemanding  increased  wages  (around  Rs  700  per  day),  full 100 days of employment and timelypayments ?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI KAMLESH PASWAN)

(a)&(b):       The primary objective of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin): VB-G RAM G Act, 2025, is to align  the  rural  development  framework  with  the  national  vision  of Viksit  Bharat  @2047  by  providing  an  enhanced  statutory  wage employment guarantee of one hundred and twenty-five days in each financial  year  to  such  rural  households  whose  adult  members volunteer  to  undertake  unskilled  manual  work,  thereby  enabling them  to  participate  more  effectively  in  the  expanded  livelihood security framework.

Certain expressions of views by stakeholders in Punjab in relation to  the  implementation  of  VB-G  RAM-G  have  been  reported  in sections of the media.

With regards to role of Panchayat in implementation of VB-G RAM-G  it  is  stated  that  in  section  16  of  the  Act,  role  of  the Panchayat Raj Institutions in planning and implementation of VB-G RAM G Schemes  has been clearly defined,  which are as  follows: -

- (1)  The  Panchayats at the district, intermediate and village levels shall  be  the  principal  authorities  for  planning,  implementation  and monitoring of the Scheme made under the Act.
- (2) The Panchayat at the district level, shall oversee and coordinate implementation of the Scheme in the district, including finalisation and  approval  of  the  aggregate  district  level  plan,  supervision  and monitoring of works, ensuring convergence, and perform such other functions as may be assigned to it by the State Government.
- (3)  The  Panchayat  at  the  intermediate  level,  shall  prepare  and finalise the aggregate Block level plan, support Gram Panchayats in planning  and  implementation,  supervise  works  at  Gram  Panchayat and Block levels, and facilitate convergence with line departments.
- (4)  The  Gram  Panchayat  shall  register  households,  receive  and process applications for work, prepare the Viksit Gram Panchayat Plans, execute the works assigned to it, maintain such records as may  be  specified  by  the  State  Government,  and  discharge  such other responsibilities as may be entrusted to it under the Scheme.

Additionally,  the  Gram  Panchayat  is  the  primary  village-level authority  for  planning,  implementation,  and  execution  of  works under the Scheme. It is responsible for registering rural households and issuing GraminRozgar Guarantee Cards, receiving and processing applications for work, and maintaining all related records.

The Gram Panchayat prepares the Viksit Gram Panchayat Plan through a participatory process based on recommendations of the Gram  Sabha  and  Ward  Sabhas,  ensuring  saturation-based  and convergence-oriented planning.

It executes works allotted by the Programme Officer and may take  up  any  sanctioned  work  from  the  approved  Viksit  Gram Panchayat Plan within its jurisdiction, with at least fifty percent of the  total  works  (in  cost  terms)  to  be  implemented  through  Gram Panchayats.

Gram Panchayat is required to maintain muster rolls and other prescribed  records,  ensure  that  works  meet  required  technical standards  and  measurements,  and  follow  digital  and  transparency requirements.  It must  place  all  relevant  documents,  including muster rolls, bills, vouchers, measurement books, sanction orders, and geo-tagged and digital records before the Gram Sabha to enable regular social audits and public scrutiny, thereby supporting transparency, accountability, and grievance redressal in implementation.

Overall, the Act positions the Gram Panchayat as the principal grassroot institution responsible for demand registration, participatory planning, decentralised execution, worker engagement, and public accountability under the Scheme framework. The experience gained through implementation of Mahatma Gandhi NREGS has also   been  taken  into  account  while framing the new Act.

With regards to altering of existing funding pattern, it is stated that a 60:40 Centre-State financial sharing pattern would not affect given therein. Here  it  is  also  stated  that,  all  major  rural  employment schemes  in  the  country  have  operated  on  shared  funding  models the implementation of the scheme and guarantee between the Centre and the States. For example:

- The National Rural Employment Programme (NREP) followed a 75:25 sharing pattern.
- The Rural Landless Employment Guarantee Programme (RLEGP) adopted a 50:50 model.
- The JawaharRozgarYojana (JRY) operated on an 80:20 basis.
- Schemes such as SGRY(SampoornGrameenRozgarYojana), EAS(Employment Assurance Scheme) were also implemented on a Centre-State sharing pattern, generally in the ratio of 75:25.

Further, almost all Centrally Sponsored Schemes (CSS) across sectors are being implemented on 60:40 sharing model. The 60:40 pattern  adopted  under  this  Act  is  therefore  consistent  with  the broader framework of Centrally Sponsored Schemes.

This model promotes cooperative federalism by making States active partners in rural development. The journey from Viksit Gram Panchayats to a Viksit Bharat requires strong State ownership and accountability,  and  the  shared  funding  framework  reinforces  this partnership approach.

In addition, special protective provisions have been made for North-Eastern and Himalayan States and Union Territory (Himachal Pradesh,  Uttarakhand  and  Jammu  &  Kashmir),  where  a  90:10 Centre-State sharing pattern applies, ensuring that financially constrained States are not placed under undue stress.

Moreover, the Act clearly provides that in the event of natural disasters,  pandemics,  or  other  extraordinary  circumstances,  State Governments may recommend special operational relaxations to the Centre.   The  framework  is  thus  not  rigid,  but  responsive,  flexible, and  sensitive  to  emerging  needs. Overall,  the  funding  pattern  is designed  to  balance  fiscal  responsibility,  State  participation,  and national rural development priorities.

(c):  With  regard  to  fixation  of  wage  payment  under  Mahatma Gandhi   NREGS  it  is  stated  that  as  per  Section  6  (1)  of  Mahatma Gandhi National Rural Employment Guarantee Act (Mahatma Gandhi NREGA), 2005, the Central Government may, by notification, specify the wage rate for unskilled work for its beneficiaries. Accordingly, the Ministry of Rural Development notifies Mahatma Gandhi NREGA wage rate  for  every  financial  year  for  States/UTs.  To  compensate the Mahatma Gandhi NREGA workers against inflation, the Ministry of  Rural  Development  revises  the  Wage  rate  every  year  based  on change  in  Consumer  Price  Index  for  Agricultural  Labour  (CPI-AL).

The wage rate is made applicable from 1st April of each financial year.

In  case  of  Punjab,  the  notified  wage  rate  for  the  State  of Punjab for unskilled workers under Mahatma Gandhi NREGS for the financial year 2024-25 was Rs. 322, which has been revised to Rs. 346  for  the  financial  year  2025-26.  This  reflects  an  increase  of approximately 6.94% in the wage rate.

Further,  it  is  also  submitted  that  State  Governments  can provide wages over and above the wage rate notified by the Central

Government from their own resources.

With  regard  to  timely  payment  of  wages,  it  is  stated  that  as per  the  provisions  of  the  Act,  beneficiaries  are  entitled  to  receive wage  payments  within  15  days  of  work  completion.  In  order  to ensure  timely  payment,  the  Government  of  India  has  issued  a comprehensive Standard Operating Procedure (SOP) to all States/UTs,  which  defines  fixed  timelines  for  each  stage  of  the wage payment process from muster roll uploading to FTO approval. The Ministry along with the States/UTs has been making concerted efforts for improving the timely payment of wages. States/UTs have been advised to generate pay orders in time.

The Ministry has taken various steps to ensure timely payment of  wages  to  workers  under  the  Mahatma  Gandhi  National  Rural Employment  Guarantee  Scheme  (Mahatma  Gandhi NREGS).  These include:

- Improvement of National Electronic Fund Management System
-  (Ne-FMS)
-  Intensive  consultation  with  State  Governments  and  other stakeholders for ensuring timely payment of wages, verification of pending and delay compensation claims etc.
-  Formulation of Standard Operating Procedure for monitoring of timely payment and payment of delay compensation.
-  Reviewing the status of timely payment and payment of delay compensation with the States/ UTs during periodic meetings, Performance  Review  Committee  meetings,  Mid-term  Reviews etc.

Further, continued efforts have been undertaken by the Ministry through  various  technological  interventions  for  ensuring  timely payments of wages. Some of the key interventions include:

-  Direct  Benefit  Transfer  (DBT):  Wages  are  transferred  directly from the central account to workers' bank accounts, minimizing the role of intermediaries and reducing fund misappropriation. This has proven to be effective in enhancing transparency  and  preventing  leakages.  Almost  100%  of  the funds  are  managed  electronically  with  the  wage  payment made entirely through Direct Benefit Transfer (DBT) protocol.
-  Aadhaar Payment Bridge System (APBS):APBS conversion is a major reform process where benefits are credited directly into the bank accounts based on the Aadhaar of the workers under Mahatma Gandhi NREGS, preferably Aadhaar Based Payments, cutting  several  layers  in  the  delivery  process.  APBS  helps  in better  targeting,  increasing  the  efficiency  of  the  system  and reducing the delays in payments, ensuring greater inclusion by curbing  leakages  thereby  promoting  greater  accountability and transparency.
-  National Mobile Monitoring System (NMMS):Real-time attendance  capture  through  geo-tagged  photographs  at  the worksite ensures accurate and timely recording of attendance, which helps in  timely payment of wages.

Here it is also stated that Mahatma Gandhi NREGS is a fall-back option  when  no  better  employment  opportunities  are  available. Further,  States  are  regularly  sensitized  by  this  Department  to ensure that no demand for work goes unmet.

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