A Bill that takes us back to the days before MGNREGA, Pg15

Key Highlights:

• On December 15, 2025, the Centre scheduled the introduction of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 (VB-G RAM G Bill, 2025) to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
• The proposed Bill replaces MGNREGA's entitlement to demand work, removing the right to work guarantee.
• The Bill shifts from a demand-driven employment program to an allocation-based scheme, where the Centre determines the allocation quantum.
• The central government's funding share is reduced, with states now responsible for providing 40% of the funds, excluding Northeastern, hill states and Union Territories where the share is 10%.

Detailed Insights:

• The VB-G RAM G Bill undermines MGNREGA's fundamental guarantees of a centrally-funded employment program that guarantees 100 days of work per household in rural India.
• The new scheme will only operate in areas notified by the Centre, with state governments responsible for providing 125 days of work as per central norms, a potentially hollow promise given past funding issues with MGNREGA.
• States that decide to provide their own resources for a more universal employment scheme will have their spending subject to norms decided by the Centre.
• Under MGNREGA, the Centre provided 100% of the labor component and 75% of the material component, totaling at least 90% of the total expenditure, making the states unlikely to fund a scheme where the Centre has all the control.
• The proposed law compromises entitlements beyond 100 days of work, reforms to rural governance, and at least 10 entitlements that empowered people to secure their right to work, including decentralized planning.

Key Concepts Involved:

• MGNREGA: A demand-driven, centrally-funded program guaranteeing 100 days of work per rural household.
• Entitlement: A legal right to receive something, such as employment or benefits, from the government.
• Decentralized Planning: Distributing planning and decision-making power from a central authority to local levels.