Centre publishes draft rules for VB-G RAM G, invites feedback

Political & Constitutional Dimensions: The government positions the VB-G RAM G Act as a modernisation of rural employment guarantee, enhancing days of work and focusing on asset creation through village planning. The 60:40 funding model is framed as a shared responsibility. However, opposition parties argue the shift from a rights-based (demand-driven) to an allocation-based scheme weakens legal enforceability, violating the spirit of Article 21 (right to livelihood) read with Article 39(a). The Parliamentary Standing Committee headed by Congress MP Saptagiri Ulaka discussed these concerns. Critics contend that the new model may allow the Centre to cap allocations, making it harder for states to demand funds for work, thus diluting the 'guarantee' aspect.

Economic & Financial Impact: The 60:40 Centre-State funding model has significant fiscal implications. Poorer states with limited fiscal capacity may struggle to meet their 40% share, potentially reducing the scale of employment generation. The increase to 125 days provides higher income support but at a higher overall cost. The government's view is that this encourages state-level fiscal discipline and ownership. Experts argue it could exacerbate inter-state inequality, as states with weaker economies may not be able to fully utilise the scheme. The Ministry claims 25 states have already allocated funds, indicating initial uptake, but the long-term impact on state budgets needs monitoring.

Social Dimensions: The scheme remains focused on rural households, with the increased day entitlement potentially benefiting the poorest. E-KYC-verified job cards aim to improve targeting and reduce fraud. However, civil society groups warn that workers with weak digital access (lack of smartphones, internet connectivity) may be excluded, creating a digital divide. The centralisation of decision-making and monitoring may reduce local flexibility, which is crucial for meeting diverse community needs. Women, who form a large share of MGNREGA workers, could be affected if village planning processes do not adequately include them.

Governance & Administrative Aspects: The draft rules establish a new institutional framework: National Level Steering Committee, Central Gramin Rozgar Guarantee Council, and grievance redressal mechanisms. Implementation challenges include transitioning from MGNREGA's vast network, ensuring state-level administrative capacity, and operationalising digital monitoring systems. The transitional provisions appear designed to mitigate disruption, but large-scale changes in a scheme covering millions of workers require robust state capacities. The 60:40 funding model raises federalism concerns, as states now bear more financial risk, potentially leading to uneven implementation.

International Perspective: The shift from a demand-driven to allocation-based employment guarantee has parallels in other developing countries. For example, Ethiopia's Productive Safety Net Programme uses a quota-based approach but has faced criticism for not reaching all eligible households. In contrast, India's original NREGA was praised globally for its rights-based approach. The new model moves towards a more fiscally controlled system, similar to some conditional cash transfer programmes, which may reduce the scheme's counter-cyclical role during economic distress.