Policy Shift in Rural Employment: MGNREGA Gets a Makeover

The Congress has criticized the rebranding of MGNREGA as VB-G RAM G Act, stating it reduces local control over employment allocation and shifts financial burdens to states. The scheme's efficacy is under question with reduced federal funding, potentially fewer workdays, and restrictions during the farming season.

In a recent press conference, Congress spokesperson Abhishek Dutt voiced concerns over the government's overhaul of the rural employment scheme previously known as MGNREGA. The scheme has been rebranded as the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act.

Dutt claimed that this policy change might deprive approximately 12 crore rural residents of guaranteed work due to centralization of work allocation by the Union government. Previously, local entities had a say in this process. The shift also involves a reduced federal funding structure from 90% to 60%, with states filling the financial gap.

The new Act promises 125 days of employment, an increase from the previous 100 days. However, historical data suggests delivery of less than 42 days on average between 2019 and 2024, casting doubt on the implementation of these promises. Additionally, a clause prohibits work during 60 days of the farming season, potentially weakening laborers' bargaining power.