The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 has received Presidential assent, formally replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. This development marks a significant shift in India’s rural employment policy framework and has become a key topic of analysis in governance and social justice discussions, particularly for aspirants preparing through UPSC coaching in Hyderabad.
Background
- MGNREGA (2005): Guaranteed 100 days of wage employment per rural household, demand-driven, rights-based, and implemented through Panchayati Raj institutions.
- VB-G RAM G Act (2025): Introduced to align rural employment with the national vision of Viksit Bharat @2047, promising modernization and convergence with other development schemes.
Features of VB-G RAM G Act
- Guaranteed Work: 125 days of wage employment per household annually (up from 100 days under MGNREGA).
- Funding Model: Centre-State cost sharing at 60:40, unlike MGNREGA where the Centre bore 90% of costs.
- Normative Allocation: Funds distributed based on “objective parameters” decided by the Union government, making it command-driven rather than demand-driven.
- Seasonal Restriction: No employment for 60 days during peak agricultural season, potentially worsening inequalities.
- Planning: Introduction of Viksit Gram Panchayat Plans for decentralized planning, but with strong central oversight.
- Employment Days Reality: While 125 days are promised, past funding constraints meant households averaged only ~50 days of work annually, raising doubts about feasibility.
Achievements of MGNREGA
- Increased rural incomes and reduced poverty.
- Women’s participation consistently above 55%, promoting gender parity.
- Reduced reliance on moneylenders by 21%.
- Created durable assets like water conservation structures.
- Strengthened Panchayati Raj institutions and local governance.
- Recognized globally as a “stellar example” of rural development by the World Bank in 2014.
Concerns with VB-G RAM G Act
- Dilution of Rights: MGNREGA guaranteed work as a legal right; VB-G RAM G shifts to a centrally sponsored scheme.
- Reduced Local Autonomy: Panchayats lose control over planning and implementation.
- Financial Burden on States: States must bear 40% of costs, limiting their ability to meet demand.
- Risk of Political Bias: Normative allocation may lead to favoritism in fund distribution.
- Exclusionary Clauses: Seasonal restrictions deny work when rural households most need income.
- Corruption Risks: No new safeguards against leakages or misuse of funds.
Conclusion
The VB-G RAM G Act, 2025 promises modernization and increased workdays but undermines the rights-based, demand-driven nature of MGNREGA. By shifting financial responsibility to states and centralizing control, it risks weakening rural livelihood security and eroding local governance.
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