Viksit Bharat Rozgar Bill 2025: Replacing MGNREGA

Paper: GS – II, Subject: Polity, Topic: Legislature, Issue: Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill.

Context:

The Union Government has introduced the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, marking a major shift in India’s rural employment policy framework after two decades.

Key Takeaways:

MGNREGA vs VB–G RAM G Bill, 2025 (Key Differences):

AspectMGNREGA (2005)VB–G RAM G (2025)
NatureRights-based employment guaranteeAdministrative employment & livelihood scheme
FrameworkDemand-drivenSupply-driven
Legal guaranteeEnforceable right to workNo explicit enforceable right
Guaranteed days100 days125 days (with conditions)
SeasonalityYear-round employmentSeasonal pause permitted
BudgetingDemand-based, flexibleNormative allocation with budget cap
Cost sharing (General States)Centre 90% : States 10%Centre 60% : States 40%
Excess expenditureCentre bearsStates bear
Planning authorityGram Panchayat (bottom-up)Centrally guided plans
Job cardsHousehold-basedIndividual-based

Key Issues & Implications:

1.    Labour Market Impact

Seasonal pauses may alter rural labour dynamics by:

  • Increasing dependence on private agricultural employers
  • Weakening fallback employment during agrarian distress
  • Reducing bargaining power of landless labourers

2.   Asset Quality Vs Employment Focus:

The new framework prioritises:

  • Durable rural infrastructure
  • Convergence with logistics, connectivity, and infrastructure missions

This may improve asset quality but risks diluting the scheme’s role as an income shock absorber.

3.   Technology-Driven Governance:

  • Mandatory digital planning tools
  • Geo-tagging, real-time dashboards, and algorithm-based monitoring

While efficiency may improve, risks of digital exclusion persist in remote and low-connectivity regions.

4.   Administrative Discretion:

Greater discretion with implementing authorities in:

  • Identifying works
  • Phasing employment
  • Approving plans

This may weaken grievance redressal mechanisms available earlier under a rights-based law.

5.   Transition Challenges:

  • Ongoing MGNREGA works need migration to the new framework
  • State machinery requires rapid reorientation
  • Potential disruption in wage payments during transition phase

Government’s Stated Rationale:

  • Align rural employment with Viksit Bharat @2047
  • Improve productivity and infrastructure outcomes
  • Address labour shortages in agriculture
  • Bring predictability to public expenditure

Way Forward:

  • Safeguards against exclusion during seasonal pauses
  • Clear grievance redressal mechanisms
  • Flexibility for States facing distress years
  • Strengthening social audit institutions
  • Ensuring technology complements human oversight

Conclusion:

The VB–G RAM G Bill reflects a transition from employment as a legal safety net to employment as a managed development instrument. Its success will depend on balancing fiscal discipline with livelihood security for rural India.

https://www.thehindu.com/news/national/insult-to-mahatma-gandhi-opposition-attacks-centre-over-new-rural-jobs-law/article70399565.ece

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