Repeal of MGNREGA and New Bill

Exam-Focused Notes on the Proposed VB-G RAM G Bill, 2025

Overview:

• The central government proposed the VB-G RAM G Bill, 2025 to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
• The new Bill intends to align with the "Viksit Bharat @2047" vision by providing 125 days of wage employment to rural households but lacks fundamental work guarantees.

Key Provisions of the VB-G RAM G Bill:

1. Removal of Right to Work:

   • The Bill eliminates the original guarantee of work provided by MGNREGA that allowed households to demand work and receive up to 100 days of guaranteed employment per year.

2. Section 4 (5) - Normative Allocation:

   • States that the central government will determine state-wise allocations, undermining the demand-driven nature of MGNREGA.
   • Replaces a mandatory provision with discretionary allocations, impacting employment guarantees significantly.

3. Section 5 (1) - Conditional Employment Guarantee:

   • Introduces a situation-dependent guarantee where states may only be required to provide employment in certain notified areas—limiting the scope and reach of the program.

4. Section 4 (6) - State Expenditure Norms:

   • Requires states to follow norms set by the central government even if they wish to generate additional employment resources, which can hinder state efforts in better employment schemes.

5. Section 22 (2) - Fund Sharing Pattern:

   • Changes funding to a 60:40 ratio for the central and state governments, contrasting with MGNREGA's previous 100% funding for labor costs and 75% for materials.
   • For Northeastern, Hill States, and Union Territories, the funding ratio will be 90:10.

Implications:

• Contrast with MGNREGA:

  • MGNREGA provided a strong legal framework for employment, with provisions ensuring transparency and accountability. The new Bill lacks these assurances and may revert the employment scheme to historical inadequacies (e.g., low workdays under previous schemes like JRY).

• Employment Shortfall:

  • MGNREGA effectively provided approximately 50-55 days of employment per year in recent years despite its promise of 100 days, indicating systemic issues that the new scheme fails to address.

Historical Context:

• MGNREGA was enacted in 2005 with widespread political consensus, focusing on rural employment and dignity in labor. The current withdrawal proposal is viewed as undermining democratic processes and failing to uphold entitlements envisioned in the original act.

Recommended Actions:

• Advocates argue for enhancing MGNREGA instead of replacing it, insisting that the original framework could be improved upon—such as increasing the guaranteed days to 125 with higher minimum wages.

Conclusion:

• The proposed VB-G RAM G Bill faces substantial criticism for its lack of guarantees and potential to revert to ineffective employment measures. Stakeholders emphasize the importance of preserving the essence of MGNREGA to protect rural livelihoods in India.