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SHOCKWAVE in Rural India: MGNREGA Is Out! Hello, VB-G-RAM-G? Inside the New Job Guarantee Bill, 125 Days of Work, and the ‘Gandhi’ Row
Summary: The monumental MGNREGA scheme is slated for a total revamp under the proposed Viksit Bharat -Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G-RAM-G). Key changes include boosting the guarantee from 100 to 125 days, setting strict 7-15 day payment deadlines, and a dramatic shift to a 60:40 Centre-State funding split for wages, replacing the 100% Centre-funded model. The decision to drop Mahatma Gandhi's name from the flagship scheme has intensified an already raging political debate in Parliament.
India's Biggest Job Scheme Gets a New Blueprint
Since its launch in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has stood as a robust social security net, offering 100 days of unskilled work to rural households. Now, nearly two decades later, the scheme is at the cusp of its most significant transformation, set to be renamed and restructured under a new Bill.
The proposed legislation introduces the 'Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin),' or VB-G-RAM-G, positioning the rural employment initiative firmly under the national 'Viksit Bharat' agenda. This overhaul introduces both substantial benefits for beneficiaries and controversial financial changes for states.
The 4 Crucial Shifts: From MGNREGA to VB-G-RAM-G
The new Bill doesn't just change the name; it fundamentally alters the scheme's scope and financial backbone.
1. Livelihood Boost: 125 Days Guaranteed
The core promise of the employment guarantee is being enhanced. The existing 100-day work entitlement for rural job seekers will be raised to 125 days, offering an additional 25 days of essential income per household annually.
2. Expedited Payments & Unemployment Allowance
Addressing one of the biggest bottlenecks in MGNREGA - delayed payments - the new Bill mandates a strict payment schedule:
- Wages must be credited within 7 to 15 days of work completion.
- The provision for an unemployment allowance if payments exceed this window is retained, tightening financial accountability.
3. The 60:40 Funding Bombshell
This is the most contested provision. Under the current MGNREGA, the Centre bears 100% of the wages for unskilled labour, while States share costs for skilled labour and material.
The VB-G-RAM-G scheme proposes a uniform 60:40 Centre-State sharing ratio for the scheme's overall expenses, including wages. This ratio changes only for special category states:
- 90:10 for Northeastern and Himalayan States.
- 100% Centre-funded for Union Territories.
Out of the proposed ₹1.51 lakh crore annual budget, the Centre’s share would be ₹95,692 crore, meaning states will have to absorb a significantly larger portion of the wage cost burden.
4. Structured Work and Digital Transparency
The Bill categorizes rural work into four specialized domains: Water Security, Rural Infrastructure, Livelihood Infrastructure, and Disaster Resilience.
To maintain efficiency and transparency:
- Work will be restricted during peak agricultural seasons to avoid labour shortages on farms.
- Mandatory use of biometrics and geotagging will be codified for real-time monitoring and minimizing fraud.
- A robust multi-level grievance redressal mechanism will be established.
Political Storm: Why Drop Mahatma Gandhi's Name?
The most emotionally charged aspect of the Bill is the proposed removal of "Mahatma Gandhi's" name from the scheme title. This has drawn sharp condemnation from the Opposition.
Senior Congress MP Priyanka Gandhi Vadra questioned the rationale: "Why are they removing Mahatma Gandhi's name? He is considered the biggest Indian leader... When such a name changes, a lot of expenditure happens in stationery and paperwork."
Congress MP Ranjeet Ranjan accused the government of prioritizing symbolic gestures over substantive reform, urging them to focus on issues like raising the work guarantee to 150 days and ensuring states receive timely fund transfers under the existing framework. The Opposition views the name change as an unnecessary cost and a symbolic slight.
Looking Ahead: The EEAT of Rural Welfare
The transition from MGNREGA to VB-G-RAM-G is fraught with political and financial challenges. While the increase to 125 days is a clear benefit for the rural poor, the shift in the fiscal responsibility to states under the 60:40 formula will put significant pressure on state budgets. The final implementation of the new Bill will determine if the new avatar can truly enhance rural livelihoods while maintaining the original scheme's reach and effectiveness.
Tags: VB-G-RAM-G Scheme Details, MGNREGA New Funding Pattern, Rural Employment Guarantee Bill
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