Why is it in news?
Today, the VB – G RAM G Bill was passed by the Rajya Sabha, while the Lok Sabha passed the bill yesterday. It seeks to replace the MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), 2005.
About MGNREGA,2005 :
• Enacted in – 2005 , Implemented from – 2006
• Demand-driven employment guarantee law
• Enhances livelihood security in rural areas
• Guarantees 100 days of wage employment per financial year to every rural household for unskilled manual work
• Employment provided within 15 days of demand
• If not provided, unemployment allowance must be paid by the State Government
• Wages must be paid within 15 days
• Minimum 1/3rd beneficiaries – Women
• Decentralised planning through Gram Sabha. Implemented by Gram Panchayats
• Payments through DBT (Direct Benefit Transfer)
• Social Audit is mandatory
• Wages : 100% by Central Government
• Material cost : 75% – Centre, 25% – States
Challenges in MGNREGA :
- Delay in wage payments – undermining the demand-driven nature of the act.
- Inadequate provision of 100 days of work in many states.
- Low wage rates in some states – often below market wages.
- Delays in fund release from the centre.
- Corruption and leakages.
- Exclusion errors due to Aadhaar – related and documentation issues.
About VB – G RAM G Bill,2025 :
To overcome the challenges of the MGNREGA, the VB – G RAM G Bill,2025, seeks to overhaul India’s rural employment framework. It aims to provide enhanced employment security and livelihood opportunities in rural areas.
Key Provisions Of The Bill :
- Replacement Of MGNREGA
• Introduces a restructured rural employment and livelihood framework. - Enhanced Employment Guarantee
• Increases guaranteed employment from 100 days to 125 days per financial year. - Unemployment Allowance
• Payable if employment is not provided within 15 days of demand. - Focus On Livelihood Creation
• Emphasis to be laid on livelihood – oriented and productive works. - Permissible Works
• Works linked to water security, rural infrastructure, climate resilience etc. - Planning Framework
• Gram Panchayats responsible for identifying and planning works.
• Gram Panchayats required to prepare a plan for works. These plans will be integrated with the PM Gati Shakti National Master Plan and also aggregated at the national level. - Implementation And Monitoring
• Establishes National and State-level steering committees.
• Strengthens coordination between Centre, State and Local bodies. - Use Of Technology
• Biometric authentication for beneficiaries.
• Use of Geospatial technology and real-time dashboards.
• Enhanced transparency and public disclosure mechanisms. - Funding Pattern
• Implemented as Centrally Sponsored Scheme.
• Cost-sharing between Centre and States as per prescribed ratios. - Seasonal Flexibility
• Allows states to pause works during peak agricultural seasons.
• Prevents labour shortages during sowing and harvesting.
Why The VB -G RAM G Bill,2025 Now?
- Limitations Of MGNREGA
• Need to reform a 20 year-old framework to address current rural realities. - Changing Nature Of Rural Distress
• Demand for employment beyond traditional unskilled manual work. - Post-Pandemic Lessons
• COVID-19 highlighted the need for better planning, monitoring and flexibility. - Integration With National Development Vision
• Aligns with Viksit Bharat vision and converges with initiatives like PM Gati Shakti. - Use Of Technology For Governance
• Leveraging digital tools for transparency, tracking and accountability.
Concerns Regarding New Bill :
- Dilution Of Rights-based Framework
• Fear that employment guarantee may become more scheme-based rather than rights-based. - Centralisation Of Powers
• Increased role of Central Government may undermine fiscal and administrative autonomy of States and Panchayats. - Technology-driven Exclusion
• Reliance on digital tools raises concerns about risk of exclusion errors for elderly, migrants etc. - Capacity Constraints
• Gram Panchayats may face capacity constraints in preparing integrated plans, tech-centric monitoring framework. - Increased Fiscal Burden On States
• Poorer states may struggle to finance excess demand for employment.
Way Forward :
- Retaining Rights-Based safeguards
• Ensuring the employment guarantee remains legally enforceable. - Building Local Capacity
• Investing in staff training of Gram Panchayats. - Ensuring Timely Payment Of Wages
• Mandating strict timelines with automatic compensation for delays. - Quality Asset Creation
• Linking works with local development and environmental needs. - Phased Transition
• To prevent disruption to ongoing works and beneficiary livelihoods.
Conclusion :
An inclusive and decentralised implementation will be key to ensuring that the new rural employment framework enhances livelihood security without excluding the most vulnerable. This would contribute to achieving the vision of a Viksit Bharat by 2047.
