Context:
The proposed Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB–G RAM G Act) has attracted criticism for potentially weakening the foundational employment guarantee principle of MGNREGA.
Key Highlights:
- Government Initiative / Policy Details
- VB–G RAM G Act claims to provide 125 days of guaranteed work, compared to 100 days under MGNREGA.
- However, Section 5(1) “switch-off” provision allows the Central Government to selectively suspend the employment guarantee, raising concerns over dilution.
- Replaces demand-driven funding with normative funding.
- Funding Mechanism Shift
- Normative funding = Allocation based on pre-determined norms rather than actual demand.
- May introduce budget caps, potentially restricting employment in high-demand states.
- Could weaken the principle of universal demand-based entitlement.
- Technology & Governance Claims
- Claims of reducing corruption through digital tools.
- However, similar tools under MGNREGA (Aadhaar-based payments, digital attendance) have shown mixed outcomes, including delayed wages and exclusion errors.
- Provisions Copied from MGNREGA
- Social audits
- Timely wage payments
- Worker entitlements
Critics argue these are largely replicated provisions without structural strengthening.
- Political & Institutional Concerns
- Allegations that the new Act sidelines MGNREGA’s legacy.
- Concerns that the core philosophy of a rights-based employment guarantee may be weakened.
Relevant Prelims Points:
- MGNREGA (2005):
- Legal guarantee of 100 days of wage employment to rural households.
- Demand-driven scheme.
- Wages to be paid within 15 days, failing which compensation is payable.
- Provision for social audits by Gram Sabhas.
- Funded by Central and State governments (cost-sharing pattern).
- Employment Guarantee Principle:
- Legal right to work on demand.
- Non-provision of work attracts unemployment allowance.
- Normative Funding vs Demand-driven Model:
- Demand-driven → No pre-fixed cap; funds follow demand.
- Normative funding → Allocation limited by budgetary norms.
- Digital Governance in Welfare Schemes:
- Aadhaar-based Direct Benefit Transfer (DBT).
- National Mobile Monitoring System (NMMS).
- Switch-off Provision:
- Allows executive discretion in implementing employment guarantee — may affect universality.
Relevant Mains Points:
GS Paper 2 – Governance
- Shift from rights-based welfare to executive-controlled welfare.
- Implications for federalism, especially if budget caps affect poorer states disproportionately.
- Concerns over accountability and transparency if guarantee becomes discretionary.
GS Paper 3 – Economy
- Rural employment as an automatic stabilizer during economic distress.
- Demand-driven public works improve rural consumption and liquidity.
- Budget caps may weaken counter-cyclical role.
- No strong correlation between poverty rates and MGNREGA expenditure across states — uniform caps may distort equity.
Governance & Technology Issues
- Digital tools may increase efficiency but risk:
- Exclusion errors
- Wage delays
- Reduced worker bargaining power
Way Forward:
- Preserve demand-driven character of rural employment guarantee.
- Ensure statutory safeguards against arbitrary suspension.
- Strengthen social audits and grievance redressal.
- Improve digital infrastructure without undermining worker rights.
- Maintain cooperative federalism in fund allocation.
UPSC Relevance:
- Welfare Schemes & Governance Reforms
• Rights-based Legislation vs Executive Discretion
• Rural Economy & Employment
• Federal Fiscal Relations