New VB-G RAM G Bill sparks debate over dilution of MGNREGA’s employment guarantee

Context:

• The Union government has introduced the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, proposing to replace the long-standing MGNREGA, a landmark rights-based rural employment programme.

• The move has triggered strong opposition protests, reflecting concerns over dilution of rural employment guarantees and greater centralisation in welfare governance.

Key Highlights:

Government Initiative / Policy Shift

• The VB-G RAM G Bill, 2025 aims to replace MGNREGA, which provides a statutory guarantee of wage employment.

• The Rural Development Minister stated that the Bill aligns with Gandhian ideals and seeks to establish “Ram Rajya” in villages.

Opposition Concerns and Protests

• Opposition parties demanded deeper scrutiny, arguing that the Bill may:

  • Weaken employment rights

  • Undermine the rights-based nature of rural welfare

  • Centralise decision-making power

From Demand-Driven to Budget-Driven Approach

• MGNREGA is demand-driven, ensuring 100 days of legal wage employment when households demand work.

• The new Bill reportedly shifts to a pre-decided budget framework, raising fears that employment will no longer be guaranteed as a right.

Funding and Fiscal Federalism Issues

• Concerns were raised about reducing the Centre’s funding share from 90% to 60%, which may:

  • Increase burden on states

  • Strain state finances amid GST compensation delays

  • Affect poorer states disproportionately

Symbolic and Moral Criticism

• Opposition leaders argued that removing Mahatma Gandhi’s name strips the programme of:

  • Historical legitimacy

  • Moral compass of social justice and dignity of labour

Work Guarantee Debate

• Government promises up to 125 days of work, but critics call it hollow without a legal demand-based guarantee.

Relevant Prelims Points:

• MGNREGA provides a legal guarantee of 100 days wage employment to rural households.

• It is a demand-driven programme, unlike budget-capped schemes.

• Shifting funding patterns affects Centre–State fiscal relations.

• Rights-based welfare schemes strengthen livelihood security and reduce distress migration.

Benefits + Challenges + Impact

• Benefit (claimed): Expanded employment days and integrated livelihood mission.

• Challenges: Possible dilution of enforceable rights, reduced central funding, state burden.

• Impact: Could reshape rural employment policy and welfare governance in post-independence India.

Relevant Mains Points:

Social Justice and Welfare State Dimensions

• MGNREGA is a cornerstone of India’s rights-based welfare architecture, ensuring:

  • Livelihood security

  • Social inclusion

  • Rural asset creation

Governance and Federalism Concerns

• Reduced central funding share may weaken cooperative federalism.

• Centralisation of decision-making could undermine decentralised Panchayati Raj implementation.

Rights-Based vs Mission-Based Approach

• The debate reflects a shift from:

  • Legal entitlement model → Administrative mission model

• This raises questions about accountability, enforceability, and citizen empowerment.

Way Forward

• Any reform must ensure:

  • Retention of legal employment guarantees

  • Adequate and predictable funding to states

  • Strong transparency and social audit mechanisms

• Parliament must subject such major welfare restructuring to deeper committee scrutiny.

UPSC Relevance (GS-wise):

• GS 2 (Polity): Rights-based legislation, Centre–State relations, decentralisation

• GS 2 (Social Justice): Rural employment, poverty alleviation, welfare schemes

• GS 1 (Post-Independence India): Evolution of social security and rural development programmes