Model Answer

The introduction of the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 marks a significant departure from the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), one of India’s most important rights-based welfare legislations. While the government presents the new Bill as a reform aligned with Gandhian ideals and the vision of Ram Rajya, its design raises substantive concerns regarding employment security and Centre–State fiscal relations.

Shift from Rights-Based to Budget-Driven Framework: MGNREGA was a demand-driven programme that provided a statutory guarantee of 100 days of wage employment, making employment a legal right rather than a discretionary benefit. In contrast, the proposed Bill operates within a pre-determined budgetary envelope. This weakens the enforceability of employment guarantees, particularly during periods of agrarian distress, climate shocks, or economic downturns when demand for rural employment typically rises.

Implications for Fiscal Federalism: The proposed reduction in the Centre’s funding share from 90% to 60% significantly alters the fiscal architecture of rural employment. States, already facing constrained fiscal space and delayed GST compensation, may struggle to finance the scheme adequately. This risks uneven implementation across states, undermining the principle of cooperative federalism and increasing regional disparities in livelihood security.

Centralisation and Governance Concerns: Opposition parties argue that greater centralised decision-making dilutes local accountability and grassroots planning, which were core strengths of MGNREGA. The removal of Mahatma Gandhi’s name is also criticised as symbolic of a deeper erosion of the scheme’s ethical and historical foundations, which had helped build public trust and legitimacy.

Assessment of Stated Objectives: While the promise of 125 days of work and better integration with agriculture appears progressive, these assurances lack legal backing without a rights-based framework. Employment guarantees cannot rely solely on executive intent.

In conclusion, while reforming rural employment schemes is necessary, weakening legal entitlements and fiscal decentralisation risks undermining livelihood security. Any transition must preserve rights, strengthen state capacity, and ensure that the ideals of Ram Rajya translate into tangible, enforceable protections for rural households.