Why are States opposing VB-G RAM G, Pg14

Key Highlights:

• The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) is set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from July 1.
• The new scheme shifts from a "demand-driven framework" to a "supply-driven scheme" with allocations capped by a fixed Union government budget.
• VB-G RAM G increases guaranteed workdays from 100 to 125 but raises the financial burden on states from 10% to 40% of total expenditure.
• States like Madhya Pradesh, Bihar, and Jharkhand have opposed the increased financial share and other provisions.
• The Union government gains more power, including notifying rural areas for scheme implementation and determining fund distribution methodology based on 16th Finance Commission recommendations.

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Detailed Insights:

• Under MGNREGA, the Union government covered 100% of labor wages and 75% of material wages, resulting in an approximate 90:10 Centre-State cost share.
• The VB-G RAM G introduces a "blackout period" during peak agricultural seasons to ensure labor availability, a departure from the universal nature of MGNREGA.
• Several states have requested revisions to wage rates, with Bihar seeking an increase from ₹255 to ₹413 and Jammu & Kashmir from ₹272 to ₹311.
• Concerns have been raised by states regarding delays in clearing wage and material bills by the Centre under the previous scheme.
• The draft rules for VB-G RAM G allow the Union government to notify specific rural areas for implementation, unlike the universal application of MGNREGA.
• The 16th Finance Commission's recommendations for horizontal devolution among states will guide the inter-State distribution of funds under the new scheme.

Key Concepts Involved:

• Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G): A new central scheme replacing MGNREGA, aiming to provide 125 days of guaranteed rural employment with a revised funding pattern.
• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): A social welfare legislation enacted in 2005 guaranteeing 100 days of wage employment to rural households on demand.
• Demand-driven framework: A system where work is provided based on the demand from eligible households, ensuring a legal right to employment.
• Supply-driven scheme: A system where employment is provided based on a pre-determined budget and allocation, rather than immediate demand.
• 16th Finance Commission: A constitutional body that recommends the distribution of tax revenues between the Union and states, and among states.