Context:
The Union Government is yet to finalize objective parameters for fund allocation before rolling out the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, which replaces MGNREGA, 2005.

Key Highlights:

• Government Initiative / Policy Details

• The VB-G RAM G Act, 2025 provides a statutory guarantee of up to 125 days of wage employment to rural households.
• It replaces MGNREGA, which guaranteed 100 days of employment.
• Implementation is pending due to consultations with State governments.

• Normative Allocation & Administrative Issues

• The Centre is yet to finalize “normative allocation” criteria for distributing funds among States.
• Allocation will be based on objective parameters prescribed annually.
• Rules need to be framed under 11 categories, including social audit mechanisms.

• Stakeholders Involved

• Union Ministry of Rural Development
• State Governments
• Rural households and labourers
• Civil society (for social audits)

• Significance / Concerns

• Increased employment guarantee may improve rural livelihoods and income security.
• Delay in defining allocation norms may affect timely implementation.
• Concerns over centralized control vs state-specific needs.

Relevant Prelims Points:

• VB-G RAM G Act, 2025
  • Guarantees 125 days of wage employment in rural areas.
  • Focus: Unskilled manual work.
• MGNREGA, 2005
  • Legal guarantee of 100 days employment.
  • Demand-driven scheme with right to work.
• Normative Allocation
  • Formula-based distribution of funds using pre-defined indicators.
• Social Audit
  • Participatory review involving beneficiaries and local communities.
• MyGov Platform
  • Citizen engagement platform (e.g., logo competition).

Relevant Mains Points:

• Significance of Expanding Employment Guarantee
  • Enhances rural economic resilience.
  • Addresses seasonal unemployment and distress migration.
  • Supports inclusive growth and social justice.
• Challenges in Implementation
  • Lack of clarity in allocation criteria may lead to inequity.
  • Risk of bureaucratic delays and weak institutional capacity.
  • Ensuring transparency and accountability in social audits.
• Centre-State Relations
  • Balancing centralized funding mechanisms with state-level flexibility.
  • Need for cooperative federalism in scheme execution.
• Way Forward
  • Finalize transparent and data-driven allocation formula.
  • Strengthen digital monitoring and social audit systems.
  • Ensure timely fund release and grievance redressal.
  • Build state capacity and decentralised planning mechanisms.

UPSC Relevance:
• GS 2 – Governance, Social Justice (welfare schemes, federalism)
• GS 3 – Economy (employment generation, rural development)
• Prelims – Schemes, features of MGNREGA vs new Act