GS 2: GovernanceGS 3: EconomyGS 2: Social JusticePrelims

Why does the govt. want to replace MGNREGA?, Pg12

Government introduces VB-G RAM G Bill replacing MGNREGA, shifting to supply-driven model with increased state burden and central control.

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Key Highlights:

  • The Viksit Bharat Guarantee For Rozgar and Ajeevika Mission (Gramin) Bill (VB-G RAM G), intended to replace MGNREGA, was passed by Parliament on December 18, despite opposition protests.
  • MGNREGA, enacted in 2005, guarantees 100 days of unskilled manual labor per year to every rural household, with wage rates varying by state.
  • MGNREGA has 12.61 crore active workers, with women constituting over half of the workforce.
  • The new Bill shifts from a demand-driven to a supply-driven scheme, capping allocations and increasing the financial burden on states from 10% to 40%.

Detailed Insights:

  • MGNREGA originated from a proposal by the National Advisory Council (NAC) in 2004, aiming to provide an employment guarantee for the rural poor.
  • The original MGNREGA draft was weakened before being passed, but civil society efforts led to the restoration of key provisions by the Parliamentary Standing Committee.
  • MGNREGA's uniqueness lies in its universality, offering employment to anyone willing to work, irrespective of social category or BPL card status.
  • Studies show MGNREGA significantly impacted Dalit and Adivasi households, increasing consumption during lean agricultural seasons and playing a crucial role during the COVID-19 pandemic.
  • The government claims the new Bill addresses deficiencies like corruption and misuse of funds, despite MGNREGA's robust social audit mechanisms and transparent IT-based system.
  • The VB-G RAM G Bill increases guaranteed workdays to 125 but raises the financial burden on states and grants the Centre greater control over implementation.
  • The new Bill introduces a blackout period, pausing the program during peak agricultural seasons, a departure from MGNREGA's continuous availability.

Key Concepts Involved:

  • MGNREGA: A law guaranteeing 100 days of wage employment to rural households willing to do unskilled manual labor.
  • Demand-driven framework: An approach where resource allocation is based on the needs and requests of the beneficiaries.
  • Supply-driven scheme: An approach where resource allocation is determined by the government based on pre-defined parameters.
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