The Deliberate Unmaking of India’s ‘Right to Work’

Context:
The Government of India has repealed the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, replacing it with the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-G RAM G] Act, 2025. This marks a fundamental shift in India’s rural employment framework, raising serious concerns regarding social justice, federalism, and livelihood security.

Key Highlights:

Policy Shift & Legislative Change:

• MGNREGA (2005) — a rights-based, demand-driven employment guarantee law — has been repealed.

• Replaced by VB-G RAM G Act, 2025, which adopts a supply-driven employment model.

• The Union Government now controls allocation of work and resources, reducing local autonomy.

• Funding ratio altered from 90:10 (Centre:State) to 60:40, increasing fiscal burden on States.

• The new Act was passed rapidly with limited parliamentary scrutiny, unlike the extensive consultations preceding MGNREGA.

Historical & Economic Background:

• MGNREGA emerged amid post-liberalisation challenges such as:

  • Agrarian distress

  • Jobless economic growth

  • Weak rural safety nets

• It institutionalised the Right to Work as part of India’s social protection architecture.

• The repeal signals a move away from state responsibility for livelihood security.

Governance & Federal Concerns:

• Increased centralisation undermines decentralised planning through Gram Panchayats.

• Poorer States may curtail project approvals due to higher cost-sharing obligations.

• Demand for work could be artificially suppressed, defeating the purpose of employment assurance.

Social Impact & Democratic Accountability:

• MGNREGA played a critical counter-cyclical role, especially during the COVID-19 pandemic, absorbing rural distress.

• Transition from a legally enforceable right to discretionary welfare provision weakens:

  • Citizen accountability mechanisms

  • Transparency and grievance redressal

• Raises concerns about erosion of social and economic justice.

Relevant Prelims Points:

• Issue: Replacement of a rights-based employment guarantee with a supply-driven framework.

• Causes:

  • Fiscal consolidation pressures

  • Preference for market-led growth

  • Centralisation of governance

• Government Initiative:

  • VB-G RAM G Act, 2025

• Benefits Claimed:

  • Greater administrative control

  • Targeted resource allocation

• Challenges:

  • Reduced State capacity

  • Weak demand responsiveness

  • Threat to rural livelihood security

• Impact:

  • Dilution of employment as a legal entitlement

Relevant Mains Points:

• Facts & Provisions:

  • MGNREGA: Guaranteed 100 days of wage employment; demand-driven; legal entitlement.

  • VB-G RAM G: Supply-driven; Centre-led allocation; reduced fiscal support.

• Conceptual Keywords:

  • Right to Work, Welfare State, Fiscal Federalism, Social Protection, Rights vs Charity

• Static Linkages:

  • DPSPs – Article 39(a) (right to livelihood)

  • Post-Independence welfare trajectory

• Way Forward:

  • Reintroduce demand responsiveness in rural employment schemes

  • Ensure adequate fiscal support to States

  • Strengthen local self-government participation

  • Balance economic efficiency with constitutional commitment to social justice

UPSC Relevance (GS-wise):

• GS 1: Post-Independence social policy evolution

• GS 2: Polity, welfare state, Centre–State relations, social justice

• GS 3: Rural economy, employment, inclusive growth