Source: The post “A Bill that takes us back to the days before MGNREGA” has been created, based on “A Bill that takes us back to the days before MGNREGA” published in “Indian Express” on 17th December 2025.
UPSC Syllabus: GS Paper-3- Indian Economy
Context: The VB-G RAM G Bill, 2025 seeks to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by aligning rural employment with the vision of Viksit Bharat @2047. While the Bill introduces certain administrative and technological changes aimed at efficiency and convergence, it also raises serious concerns regarding dilution of rights, federal balance, and accountability.
Key Provisions
- Shift From Demand-Driven to Supply-Driven Model: The Bill marks a fundamental shift from a demand-driven employment guarantee to a supply-driven rural jobs scheme.
- Employment generation under the new framework will be limited by pre-fixed budgetary allocations rather than actual demand from rural households. Unlike MGNREGA, workers will no longer have an enforceable right to demand employment.
- Increase in Guaranteed Workdays: The Bill increases the number of guaranteed workdays per rural household from 100 days to 125 days per financial year. However, this increase is subject to budgetary ceilings determined by the Union government.
- Increased Financial Burden on States: The financial contribution required from States will rise significantly under the new Bill.
- For most States and Union Territories with legislatures, the cost-sharing ratio will shift to 60:40 between the Centre and the States.
- For north-eastern States, Himalayan States, and certain Union Territories, the cost-sharing ratio will remain at 90:10.
- Under MGNREGA, the effective cost-sharing was approximately 90:10 for all States.
- Centralised Budget Allocation: The Bill empowers the Union government to determine State-wise normative allocations for each financial year.
- These allocations will be based on “objective parameters” that will be prescribed by the Central government.
- States will no longer be able to seek additional funds based on increased demand for work.
- Restricted Geographic Coverage: The Union government will have the authority to notify specific rural areas within States where the scheme will be implemented. This represents a departure from the universal coverage model of MGNREGA, which applied to all rural areas.
- Control Over Timing of Work: The Bill allows the programme to be paused during peak agricultural seasons. This provision is intended to ensure the availability of labour for agricultural activities but may reduce employment security for rural workers.
- Codification of Technological Measures: Technological interventions previously introduced administratively under MGNREGA are formally incorporated into the new law. These include mobile app-based attendance systems, Aadhaar-based wage payments, and geotagging of worksite
Positive Intentions of the Bill
- Alignment with Changing Rural Economy: The Bill recognises socio-economic transformation in rural India, such as improved connectivity, electrification, housing, and digital access. It seeks to move beyond subsistence employment towards livelihood creation, infrastructure development, and climate resilience.
- Use of Technology for Transparency: Codification of Aadhaar-based payments, mobile attendance, and geotagging aims to reduce leakages and ghost beneficiaries. Digital monitoring can potentially improve efficiency and outcome tracking.
- Higher Notional Employment Days: The proposed 125 days of employment, compared to 100 days under MGNREGA, signals intent to enhance income support, at least in principle.
Key Challenges
- Dilution of Rights-based Framework : The Bill replaces a legal right to demand work with an allocation-based scheme. Absence of unemployment allowance removes enforceable accountability of the State.
- Excessive Centralisation: Section 4(5) empowers the Centre to determine State-wise allocations, while Section 5(1) allows it to notify specific rural areas. This departs from MGNREGA’s universal and demand-driven nature, reducing beneficiary agency.
- Increased Fiscal Burden on States: The 60:40 funding pattern (90:10 for Himalayan States) shifts significant responsibility to States. States may lack fiscal capacity, leading to uneven implementation and reduced coverage.
- Technocratic Surveillance and Work Blackout Periods: Pausing employment during peak agricultural seasons may hurt landless labourers who depend on MGNREGA as a safety net. Excessive reliance on technology risks exclusion of digitally marginalised workers.
Way Forward
- Retain the Rights-based Core: The right to demand work and unemployment allowance must be preserved to ensure accountability.
- Reform, Not Repeal: Strengthen MGNREGA by enhancing workdays to 125 days, increasing wages, and linking works to climate adaptation and asset creation.
- Cooperative Federalism: Ensure predictable central funding and greater state flexibility in design and implementation.
- Balanced Use of Technology: Technology should aid transparency without becoming a tool for exclusion; offline safeguards must be ensured.
Conclusion: While the VB-G RAM G Bill reflects aspirations of a transforming rural India, it risks undermining hard-won democratic and constitutional guarantees. A truly Viksit Bharat requires strengthening the rights-based employment framework through reform, inclusion, and cooperative governance rather than replacing it with a centrally controlled, budget-capped scheme.
Question: “The proposed VB-G RAM G Bill, 2025 represents a significant shift in India’s rural employment framework.” Critically examine the concerns associated with it, and suggest a balanced way forward.
