Government replaces MGNREGA with new VB-G RAM G Bill; guarantees 125 days work

The Indian Parliament has swiftly legislated a significant change in rural employment policy by passing the Viksit Bharat–Gramin Rozgar Aur Maanav Garima (VB-G RAM G) Bill. This new law replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a program that has been a cornerstone of rural welfare for nearly two decades. The VB-G RAM G Bill promises to guarantee 125 days of wage employment annually to rural households, an increase from MGNREGA's previous 100-day guarantee.

This legislative shift aims to enhance rural employment by more directly linking work to infrastructure development and natural resource management. While all payments will be made via Direct Benefit Transfer, the central government will now determine state-wise fund allocations, moving away from MGNREGA's demand-driven model. Funding will be shared between the Centre and states, with a 90:10 ratio for Northeastern and Himalayan states, and 60:40 for others, while the Centre fully funds Union Territories. The Bill also introduces guidelines to avoid disrupting agricultural cycles, ensuring work is restricted during peak sowing and harvesting seasons and setting a minimum wage rate.

However, the passage of this Bill has been met with strong criticism from opposition parties. Leaders like Rahul Gandhi have argued that it effectively dismantles the rights-based, demand-driven nature of MGNREGA, transforming it into a centrally controlled, rationed scheme. Opposition members staged a 12-hour overnight protest, accusing the government of rushing the legislation through without adequate debate or parliamentary committee review, calling it an "insult" to Mahatma Gandhi and a threat to crores of livelihoods.

Concerns center on the potential for the new law to weaken the crucial safety net for rural poor, particularly women, Dalits, Adivasis, and landless OBC communities, who heavily relied on MGNREGA during economic downturns, including the COVID-19 pandemic. The opposition also fears the Bill will place an excessive financial burden on states and centralize power, ultimately weakening labor protections. Rural Development Minister Shivraj Singh Chouhan has defended the Bill, stating its necessity for boosting rural development and employment while accusing the opposition of political opportunism.

This change marks a pivotal moment for rural India. The transition from a demand-driven, rights-based system to a more centrally allocated and structured approach could reshape the economic landscape for hundreds of millions of Indians. The effectiveness and impact of the VB-G RAM G Bill will largely depend on its implementation and how it navigates the balance between rural needs and governmental control.