Answer

Introduction

The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, marks a transformative shift in India’s rural development landscape. By repealing the 2005 MGNREGA, it transitions from a “relief-centric” safety net to an “asset-centric” mission, integrating rural labor with the national infrastructure vision of Viksit Bharat at 2047.

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Key Differences: VB-G RAM G Act, 2025 vs. MGNREGA (2005)

Implications of Replacing Demand-Driven with Supply-Driven Model

Positive Implications

• Fiscal Predictability: Budget-capped allocations prevent the open-ended fiscal liabilities and mid-year budget overruns common under MGNREGA.
• Strategic Asset Quality: Focusing on pre-planned projects prevents “digging and filling holes,” ensuring the creation of durable community infrastructure.
  Eg: Integrating work with PM Gati-Shakti ensures assets like rural roads meet national standards.
• Agriculture Labor Balance: The “seasonal pause” prevents rural labor shortages during harvest, stabilizing farm productivity and wages.

Negative Implications

• Dilution of Rights: Moving from a “legal right to work” to an “administrative allocation” weakens the citizen’s claim on the State during distress.
• Financial Strain on States: The 60:40 funding ratio may force poorer states to limit work provision due to fiscal incapacity.
• Loss of Local Autonomy: Centralized normative funding and pre-approved plans may overlook hyper-local distress needs that arise suddenly.
  Eg: Budget-linking may turn a universal guarantee into a “discretionary welfare scheme” managed by the Centre.

Conclusion

To overcome negative implications, the government must introduce “Crisis Triggers” that allow for automatic expansion of budgets during climate or economic shocks. Success lies in maintaining the Right to Work while upgrading the Quality of Work, ensuring that fiscal discipline does not come at the cost of rural dignity and food security.

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