Bill to replace MGNREGA faces criticism; TDP flags increased burden on State, Pg11

Key Highlights:

• The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, intended to replace MGNREGA, is under debate in the Lok Sabha.
• Opposition parties criticize the bill for altering MGNREGA's demand-driven nature and increasing states' financial burden.
• The bill proposes a 60:40 expenditure ratio between the Centre and States, differing from MGNREGA's original 90:10 ratio.
• Opposition MPs raised concerns about the bill's impact on women and the use of Hindi nomenclature.

Detailed Insights:

• The new legislation shifts decision-making power to the Centre, determining where and when work will be implemented.
• Some states currently retain the 90:10 ratio for MGNREGA, but the new bill seeks to standardize the 60:40 split.
• Concerns were raised regarding the shrinking share of central taxes for states, exacerbating their financial strain under the new bill.
• Activists are planning nationwide protests starting December 19, opposing the bill's top-down approach.
• The bill's fine print does not guarantee employment, as the Centre controls the budget and implementation areas.
• In states like Kerala, women constitute a significant portion of the MGNREGA workforce, potentially impacting their livelihoods.

Key Concepts Involved:

• MGNREGA: Aims to enhance livelihood security of households in rural areas of the country by providing at least one hundred days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.
• Fiscal Federalism: Deals with the division of financial powers and functions between different levels of government.
• Demand-Driven Scheme: A program where resource allocation is based on the needs and requests of the beneficiaries.