New jobs law reverses gains on rural equality, Pg13

Key Highlights:

• The VB-G RAM G Act replaced MGNREGA on December 18, raising concerns about its impact on rural equality.
• The new law mandates a minimum of 125 days of guaranteed wage employment in notified rural areas.
• Funding to states will now be based on "normative allocation" determined by the central government.
• States can notify up to 60 days of no work during peak agricultural seasons.

Detailed Insights:

• The VB-G RAM G Act empowers the central government to decide where the scheme will be operationalized, potentially ending the universal rights previously provided by MGNREGA.
• Section 4(5) converts the demand-driven nature of MGNREGA into a supply-constrained scheme, undermining the entitlement even in notified areas.
• The new Centre-state mandatory fund sharing architecture is viewed with skepticism by states, regardless of their political alignment.
• The ban on work during peak agricultural seasons prioritizes the welfare of large farmers over the rights of workers to fair wages.
• MGNREGA had served as a minimum support wage for labor, helping to correct the imbalance between employers and workers in rural India.

Key Concepts Involved:

• MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): 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.
• Normative Allocation: The allocation of funds made by the central government to the state based on set norms.
• Demand-Driven Scheme: A program where the provision of benefits or services is determined by the needs and requests of the beneficiaries.