Contents
Introduction
India’s Constitution treats work as an aspiration under Article 41, yet livelihood jurisprudence under Article 21 has narrowed that gap. The VB-G RAM G Act renews this constitutional debate amid changing rural labour markets.
Why Statutory Employment Guarantees Matter
- The MGNREGA framework converted constitutional aspiration into a statutory entitlement, guaranteeing 100 days of employment to rural households.
- The new VB-G RAM G Act, 2025 increases this to 125 days, thereby strengthening the quantitative dimension of the right. However, its 60:40 Centre-State financing architecture and normative allocations create concerns regarding actual enforceability.
- The Union Budget 2026-27 provides ₹95,692 crore for VB-G RAM G, while ₹30,000 crore remains allocated to MGNREGS during the transition.
- Economic Survey 2025-26 presents a nuanced picture: MGNREGS person-days declined from the pandemic peak of 389.09 crore in FY21 to about 183.77 crore by December 2025, alongside falling rural unemployment. This suggests that employment security must evolve alongside structural rural transformation.
Why An Absolute Fundamental Right Requires Caution
- Directive Principle vs. Enforceable Guarantee: Article 41 directs the State to secure the right to work within its economic capacity, functioning as a policy aspiration rather than a justiciable right. Example: Article 41 Mandate.
- Livelihood as an Integral Part of Life: Constitutional jurisprudence equates the right to life with a dignified livelihood, asserting that denying gainful work strips life of its core meaning. Example: Olga Tellis v. BMC (1985).
- Judicial Caution on Fiscal Mandamus: The Supreme Court noted that elevating work to an absolute fundamental right might force unsustainable financial obligations on the State during resource constraints. Example: Resource Allocation Trade-offs.
- Nature of Obligation: Article 21 should not be interpreted as guaranteeing a particular occupation or permanent state employment. The State should instead guarantee reasonable livelihood opportunities.
- Changing Labour Markets: With rural workers increasingly moving towards non-farm activities, an employment guarantee must complement rather than freeze workers within low-productivity manual employment. The Economic Survey itself calls for re-examining employment programmes in light of changing rural realities.
Critical Dilemmas of Minimum Wages, Fiscal Constraints, and Rural Demand
- Wage Floor vs. Employment Net Friction: The Supreme Court observed that enforcing statutory minimum wages under fixed fiscal allocations could shrink the net volume of employment generated. Example: Trade-off Wage Dilemma.
- Constitutional Prohibition of Forced Labor: Paying wages below prescribed minimum rates can amount to forced labor under Article 23, conflicting with sub-minimum welfare pay. Example: Sanjit Roy v. State of Rajasthan (1983).
- Demand-Side Economic Multipliers: Inadequate real wages reduce rural household purchasing power, dampening consumption-led economic growth. Example: Rural Demand Contraction.
Way Forward
- Adopt a Progressive Living Wage Index: Transition statutory scheme wages toward a CPI-AL indexed living wage standard to preserve real purchasing power. Example: CPI-AL Living Wage.
- Strengthen State-Level Co-Financing Models: Enforce transparent federal cost-sharing to protect worker entitlements without straining individual state budgets. Example: Cooperative Federal Funding.
- Empower Panchayati Raj Institutions: Institutionalize mandatory social audits and localized project planning through Gram Sabhas to eliminate delay in wage disbursements. Example: PRI Social Audits.
- Convergence model: Integrate VB-G RAM G with NRLM, PMAY-G, watershed development, irrigation and skilling programmes to convert temporary employment into durable livelihoods.
- Productivity transition: Gradually move from wage employment towards skills + assets + enterprises, ensuring workers can transition into higher-productivity non-farm employment.
Conclusion
Dr. A.P.J. Abdul Kalam’s vision of PURA-Providing Urban Amenities in Rural Areas captures the constitutional ideal: employment must provide dignity today while building capabilities, assets and opportunity for tomorrow.

