With new Bill, demand-led job scheme set to turn supply-driven, Pg1

Key Highlights:

• The Union government is set to introduce the Viksit Bharat — Guarantee For Rozgar and Ajeevika Mission (Gramin) Bill (VB-G RAM G Bill) in Lok Sabha, replacing MGNREGA, 2005.
• The new Bill shifts the employment scheme from a demand-driven to a supply-driven framework.
• The VB-G RAM G Bill increases guaranteed workdays from 100 to 125 but raises the States' financial burden to 40% of total expenditure.
• The Union government will determine State-wise normative allocation based on objective parameters and notify rural areas for scheme implementation.

Detailed Insights:

• The VB-G RAM G Bill aims to establish a rural development framework aligned with the national vision of Viksit Bharat @2047.
• Under MGNREGA, the Union government covered 100% of labor wages and 75% of material wages, effectively a 90:10 cost share between the Centre and States.
• Section 22(2) of the Bill mandates a 90:10 fund-sharing pattern for north-eastern and Himalayan States/UTs and 60:40 for other States/UTs with legislatures.
• The Centre will determine the State-wise normative allocation for each financial year and notify rural areas where the scheme will be implemented, increasing central control.
• The new Bill allows pausing the program during peak agricultural seasons and codifies technological interventions like mobile app-based attendance and geotagging of worksites.

Key Concepts Involved:

• MGNREGA: A demand-driven, rights-based program providing 100 days of wage employment to rural households.
• Viksit Bharat: A national vision for India to achieve developed-country status by 2047.
• Demand-driven scheme: A program where resource allocation is based on the needs and requests of the beneficiaries.