Context:
The Union Government has introduced the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G) to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. Passed in Parliament on December 18 amid opposition protests, the move represents a major shift from a rights-based, demand-driven employment guarantee to a more centralised, supply-driven framework, raising concerns over rural livelihood security and federal burden-sharing.
Key Highlights:
MGNREGA: Background and Significance:
-
Enacted in 2005, MGNREGA guarantees:
-
100 days of unskilled wage employment annually to every rural household.
-
-
Wage rates vary by State and are linked to minimum wage norms.
-
Currently has 12.61 crore active workers, with women forming over half of the workforce.
-
Unique for its universal and legal entitlement-based nature, available irrespective of caste or BPL status.
Origins of the Employment Guarantee:
-
Proposed by the National Advisory Council (NAC) in 2004 as a social protection measure.
-
Though the draft was initially diluted, civil society mobilisation and Parliamentary Standing Committee intervention restored key provisions, making it a landmark rights-based welfare law.
Government’s Rationale for Replacement:
-
The government claims the new Bill addresses deficiencies such as:
-
Corruption
-
Misuse of funds
-
Inefficiencies in implementation
-
-
However, MGNREGA already has:
-
Social audit mechanisms
-
Transparent IT-based monitoring
-
Legal accountability for work demand and wage payments
-
Key Changes Under VB-G RAM G Bill:
Shift from Demand-driven to Supply-driven Model:
-
MGNREGA: Work must be provided when demanded by households.
-
VB-G RAM G: Allocations will be capped and determined by the Centre, weakening the employment guarantee.
Increased Financial Burden on States:
-
State contribution rises from 10% to 40%, altering fiscal federalism.
-
Poorer States may reduce project approvals due to higher costs, suppressing demand.
Greater Central Control:
-
Implementation authority shifts more towards the Union government, reducing Panchayat-level autonomy.
Workdays Increased but Conditional:
-
Guaranteed workdays increased from 100 to 125 days, but with:
-
Allocation limits
-
New restrictions like blackout periods
-
Blackout Period Introduced:
-
Programme may be paused during peak agricultural seasons.
-
Departure from MGNREGA’s continuous availability, reducing its role as a safety net during distress periods.
Social Justice Concerns:
-
Studies show MGNREGA significantly benefited:
-
Dalit and Adivasi households
-
Rural poor during lean seasons
-
Migrant workers during the COVID-19 pandemic
-
-
Replacement could weaken livelihood security and democratic accountability.
Relevant Prelims Points:
-
MGNREGA (2005): Legal right to 100 days of rural wage employment.
-
Demand-driven Scheme: Resources provided based on beneficiary demand.
-
Supply-driven Scheme: Government decides allocations and availability.
-
Active Workforce: 12.61 crore workers, majority women.
-
VB-G RAM G Bill: Raises workdays to 125, increases State share to 40%.
Relevant Mains Points:
-
Keywords & Conceptual Clarity:
-
Right to Work, Social Protection, Fiscal Federalism, Decentralised Governance
-
-
Governance Issues:
-
Centralisation vs Panchayati Raj empowerment
-
Accountability shift from citizens’ right to State discretion
-
-
Way Forward:
-
Strengthen social audits and transparency instead of repeal
-
Ensure adequate Centre funding support
-
Retain demand-driven guarantee for rural distress mitigation
-
Balance reform with constitutional commitment to social justice
-
UPSC Relevance (GS-wise):
-
GS 2: Governance, welfare state, Centre–State relations, social justice
-
GS 3: Rural economy, employment generation, inclusive growth
-
Prelims: MGNREGA provisions, scheme frameworks