Brief Context
Context The Union Minister of Rural Development and Agriculture Farmers’ Welfare introduced the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin): VB G RAM G Bill, 2025 in Lok Sabha. About It will replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA). The move will mark a shift from a “demand-driven framework” to a “supply-driven scheme”.
Source Content
Syllabus: GS2/Governance
Context
- The Union Minister of Rural Development and Agriculture & Farmers’ Welfare introduced the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin): VB G RAM G Bill, 2025 in Lok Sabha.
About
- It will replace the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA).
- The move will mark a shift from a “demand-driven framework” to a “supply-driven scheme”.
Key Statutory Provisions
- Enhanced Livelihood Guarantee: It will enhance the statutory wage employment guarantee to 125 from 100 days per rural household in every financial year, for adults who volunteer to undertake unskilled manual work.
- Centrally Sponsored Scheme: The scheme will be implemented as a Centrally Sponsored Scheme with shared responsibilities between the Centre and States.
- The fund sharing pattern will be 90:10 for North-Eastern and Himalayan States/UT and 60:40 for all other States.
- Normative Allocation to States based: States will ensure transparent and need-based intra-State distribution of funds across Districts and Gram Panchayats, taking into account the category of the Panchayats and local developmental needs.
- Wage rate specification: Wage rates for unskilled manual work will be specified by the Central Government; until separate rates are notified, existing MGNREGA wage rates will apply.
- Securing peak agricultural seasons: States will be empowered to notify in advance, a period aggregating to 60 days in a financial year covering peak sowing and harvesting during which works under the Bill will not be undertaken, facilitating sufficient farm labour at critical times.
- Unemployment allowance: If eligible applicants are not provided work within the stipulated period, State Governments will be obliged to pay unemployment allowance.
- State schemes within six months: Every State Government must notify its Scheme to operationalise the guarantee within six months of the Bill’s commencement.
- VGPP based planning: Planning will be undertaken through Viksit Gram Panchayat Plans, prepared by Gram Panchayats and integrated with national spatial planning systems.
- Institutional Oversight: The Central Gramin Rozgar Guarantee Council and the State Gramin Rozgar Guarantee Councils shall be constituted for review, monitoring and effective implementation of the provisions of the legislation in their respective areas.
Concerns with the Bill
- Excessive burden on States: Unlike MGNREGA, where the Centre bears 100% wage cost and 75% of material cost, the VB-G RAM G Bill mandates a 60:40 Centre–State funding pattern, many states may struggle to mobilise their 40% share.
- It increases the risk of uneven implementation across states, reinforcing regional disparities.
- Lessons from PMFBY: Similar cost-sharing under PM Fasal Bima Yojana led to delays due to states’ inability to pay their 50% premium subsidy, causing poor coverage and credibility loss.
- Shift from demand-driven to supply-driven allocation: Earlier approach in MGNREGA was Bottom-up, demand-based estimation by states.
- New Bill introduces Top-down “normative” allocation, with parameters decided unilaterally by the Centre.
Conclusion
- To cater to the changing aspirations, stronger convergence is required to establish an integrated, Whole-of-Government rural development framework covering several complementary Government schemes.
- As national development advances, rural development programs require periodical revision to remain aligned with emerging needs and further aspirations.
Source: PIB