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Context:
The Union government is preparing to introduce the Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill in the Lok Sabha, proposing to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. The Bill signals a major restructuring of India’s flagship rural employment programme.
Key Changes Proposed:
Shift in Scheme Design
- Moves from a demand-driven framework (legal right to demand work) to a supply-driven model.
- Employment will be provided only in rural areas notified by the Union government, not universally across all rural regions.
Budgetary Structure
- Annual allocations will be capped at a fixed budget decided by the Centre.
- Budget determination will be based on unspecified “parameters”, reducing statutory entitlement.
Guaranteed Workdays
- Increases guaranteed employment from 100 days to 125 days per household.
Centre–State Financial Sharing
- State governments’ share of expenditure rises sharply:
- From 10% under MGNREGA
- To 40% under the new Bill
- This substantially increases fiscal pressure on States, particularly poorer ones.
Comparison with MGNREGA
| Aspect | MGNREGA (2005) | VB–G RAM G Bill |
|---|---|---|
| Nature of Scheme | Demand-driven, rights-based | Supply-driven |
| Legal Guarantee | Statutory right to work | Conditional on Centre’s notification |
| Workdays | 100 days | 125 days |
| Budget | Demand-based, uncapped | Fixed, capped allocation |
| State Share | ~10% | 40% |
| Coverage | All rural areas | Select notified rural areas |
