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UPSC » Daily News Analysis ‘Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025’ : 16 December

Daily News Analysis ‘Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025’ : 16 December

Table of Content

Why in News?

  • The Union government is set to introduce the Viksit Bharat -Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 in the Lok Sabha, proposing to replace the MGNREGA, 2005, triggering strong political and policy debate.

Background: From MGNREGA to VB-G RAM G

  • The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005 is a rights-based, demand-driven employment programme.
  • It legally guarantees 100 days of wage employment to rural households on demand.
  • The new Bill proposes to repeal MGNREGA and replace it with a supply-driven framework.
  • This marks a fundamental shift in the philosophy of rural employment support.

Key Features of the Proposed VB-G RAM G Bill

  • The scheme increases guaranteed workdays from 100 to 125 days per year.
  • Employment will be provided only in rural areas notified by the Union government.
  • Budgetary allocations will be capped at a fixed amount, decided by the Centre.
  • The allocation will be based on “parameters” that are not yet clearly defined.

Shift from Demand-Driven to Supply-Driven Model

  • Under MGNREGA, employment is provided whenever workers demand work.
  • The new Bill removes this legal entitlement and replaces it with administrative allocation of work.
  • This weakens the rights-based nature of rural employment guarantees.
  • Critics argue this reduces accountability and responsiveness to rural distress.

Increased Financial Burden on States

  • Under MGNREGA, States currently bear about 10% of the total expenditure.
  • The proposed Bill increases the States’ contribution to 40% of total expenditure.
  • This may strain the finances of poorer States with high rural unemployment.
  • States fear reduced flexibility and increased dependence on Central notifications.
Criticism 
  • Opposition parties have criticised the Bill as an attempt to dismantle a landmark welfare law.
  • Critics argued that none of the recommendations of the Parliamentary Standing Committee were incorporated.
  • Several leaders have objected to the removal of Mahatma Gandhi’s name, calling it unnecessary and symbolic.
  • The scheme is being portrayed by critics as a dilution rather than reform.

Concerns Over Rights-Based Framework

  • MGNREGA is credited with providing a social safety net during crises, including the COVID-19 pandemic.
  • The new Bill is seen as shifting from a legal right to discretionary welfare.
  • Experts fear exclusion errors due to selective notification of rural areas.
  • The removal of guaranteed demand-based employment may weaken rural bargaining power.

Implications for Rural Livelihoods

  • Rural employment schemes are crucial for income security, food security, and asset creation.
  • Reduced certainty of employment may increase seasonal migration and rural distress.
  • Higher State costs may lead to uneven implementation across regions.
  • The long-term impact on rural poverty reduction remains uncertain.

Way Forward and Policy Debate

  • The government argues the new scheme aligns with the vision of Viksit Bharat and improved efficiency.
  • Critics demand wider consultation and parliamentary scrutiny before repealing MGNREGA.
  • Clear guidelines on budget parameters and area notification are essential.
  • The debate highlights the tension between fiscal control and social welfare rights.