NREGA needs reform but changes fray safety net, Pg11

Key Highlights:

• The Union government plans to replace MGNREGA with the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission Grameen (VB-G RAM G) Bill.
• VB-G RAM G aims to provide 125 days of guaranteed wage employment, an increase from MGNREGA's 100 days.
• The new bill introduces restrictions on work during peak agricultural seasons and incorporates technology for monitoring and fraud detection.
• The funding structure of VB-G RAM G shifts to a 60:40 Centre-state split, except for North-East and Himalayan states (90% central funding).

Detailed Insights:

• During the Covid-19 years (2020-21 and 2021-22), MGNREGA generated a record 389 crore and 364 crore person-days of employment, respectively.
• The shift to a 60:40 funding model under VB-G RAM G may strain state finances, potentially affecting the scheme's implementation, similar to issues faced by the Pradhan Mantri Fasal Bima Yojana (PMFBY).
• The original MGNREGA scheme followed a bottom-up approach, where states estimated work demand, but the new bill introduces a top-down approach with the Centre providing normative allocations.
• The deployment of technology, including biometric authentication, GPS, and AI, aims to improve transparency and reduce fraud in the implementation of the scheme.

Key Concepts Involved:

• MGNREGA: A demand-driven, social security scheme providing a legal guarantee for 100 days of wage employment to rural households.
• Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission Grameen (VB-G RAM G): Proposed legislation to replace MGNREGA, increasing guaranteed employment days and altering funding structure.
• Pradhan Mantri Fasal Bima Yojana (PMFBY): An agricultural insurance scheme to provide financial support to farmers suffering crop losses/damage.