Context:
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill (VB-G RAM G Bill) has been tabled in the Lok Sabha to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The proposal has triggered criticism for fundamentally altering the nature, structure, and federal character of India’s flagship rural employment programme.
Key Highlights:
Policy and Structural Changes
- The Bill seeks to replace MGNREGS, not merely rename it.
- Shifts the scheme from a rights-based, demand-driven law to a supply-driven framework.
- Makes the Union government the primary decision-maker, reducing States’ role.
Federal and Governance Concerns
- MGNREGS earlier ensured full wage payment by the Centre for unskilled labour.
- VB-G RAM G is proposed as a centrally sponsored scheme with a 60:40 Centre–State funding pattern.
- States will have to bear excess expenditure, increasing fiscal stress.
Employment and Wage Realities
- Though the Bill promises 125 days of work, data shows:
- Only 9.5% households completed 100 days of work in 2020–21 (COVID year).
- In recent years, only ~7% households received full entitlement.
- Existing MGNREGS helped raise rural wages significantly.
Impact on States
- States’ finances are already strained due to GST restructuring and fiscal pressures.
- Tamil Nadu and Kerala have opposed the Bill, citing erosion of State autonomy.
- Risk of poor State participation as Direct Benefit Transfer (DBT) schemes gain political prominence.
Ideological and Conceptual Shift
- Removal of Gandhi’s name breaks the symbolic and conceptual link with Gram Swaraj and democratic decentralisation.
- Critics argue the change undermines grassroots democracy.
Relevant Mains Points:
- Facts & Provisions:
- MGNREGS: Demand-driven, legal entitlement, full Central wage support.
- VB-G RAM G: Supply-driven, capped allocations, shared funding.
- Conceptual Clarity:
- Rights-based welfare vs discretionary welfare
- Cooperative federalism vs centralisation
- Static Linkages:
- Directive Principles of State Policy
- Gram Swaraj and decentralisation
- Concerns:
- Undermining States’ development space
- Erosion of grassroots democracy
- Way Forward:
- Retain core features of MGNREGS
- Consult States before reforms
- Strengthen demand-based rural employment
- Balance fiscal discipline with social protection
UPSC Relevance (GS-wise):
- GS II: Federalism, Centre–State relations, governance
- GS III: Rural development, employment, public finance
- GS IV: Ethics in public policy, inclusiveness, decentralisation