71^st BPSC Mains

Approach: Briefly contextualise rural employment reforms and limitations of MGNREGA. Discuss rationale, key features, and institutional–financial changes under the VB-G RAM G Act. Assess expected benefits for rural livelihoods, infrastructure, and Viksit Bharat 2047.

Answer: Rural employment has long been central to India’s social protection and poverty alleviation strategy. Since 2005, MGNREGA played a crucial role in providing wage employment, stabilising rural incomes, and creating basic assets. However, changing rural realities—such as declining poverty, diversified livelihoods, digital penetration, and higher aspirations—necessitated a comprehensive policy overhaul. In this context, the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G Act) represents a decisive reform, aligning rural employment with the long-term vision of Viksit Bharat 2047.

Rationale for Reforming MGNREGA

• Structural limitations of MGNREGA became evident over time:
  • Only a small proportion of households could complete 100 days of work.
  • Issues of misappropriation, ghost works, and weak asset quality persisted despite digitisation.
• Socio-economic transformation of rural India:
  • Poverty declined sharply from 27.1% (2011–12) to 5.3% (2022–23).
  • Greater integration with markets and non-farm livelihoods reduced the relevance of a purely demand-driven model.
  • Hence, incremental reforms were insufficient, calling for a new statutory framework.

Key Features of the VB-G RAM G Act, 2025

• Enhanced Employment Guarantee:
  • Guaranteed 125 days of wage employment per rural household, up from 100 days.
  • Provision of a 60-day no-work pause during peak agricultural seasons to ensure labour availability for farmers.
  • Integrated Infrastructure-Led Employment through four priority verticals:
    • Water security (water harvesting, groundwater recharge).
    • Core rural infrastructure (roads, connectivity).
    • Livelihood-related infrastructure (storage, markets, production assets).
    • Climate resilience works (flood control, soil conservation).
• Decentralised yet integrated planning:
  • Preparation of Viksit Gram Panchayat Plans, spatially aligned with PM Gati Shakti.
  • All assets mapped under the Viksit Bharat National Rural Infrastructure Stack.
• Financial and Administrative Reforms
  • Shift from a central sector, demand-driven model to a centrally sponsored, normative funding framework:
  • Predictable allocations improve planning and reduce misuse.
  • Cost-sharing ratio: 60:40 (Centre:States), 90:10 for NE/Himalayan states.
  • Administrative expenditure ceiling increased from 6% to 9%, strengthening staffing, training, and technical capacity.
• Transparency, Accountability, and Social Protection
  • Stronger enforcement powers to investigate irregularities and suspend funds if required.
  • Use of digital attendance, biometric authentication, AI-based monitoring, GPS-enabled asset tracking, and real-time MIS dashboards.
  • Mandatory social audits every six months, enhancing community participation.
  • Unemployment allowance after 15 days if work is not provided, reinforcing the legal guarantee.

The VB-G RAM G Act, 2025 represents a transformative shift from viewing rural employment as mere relief to positioning it as a strategic instrument for infrastructure creation, climate resilience, and income diversification. By combining enhanced employment guarantees with robust planning, predictable financing, and advanced digital governance, the Act aligns rural development with national priorities and future challenges. If implemented effectively, it can strengthen rural economies, reduce distress migration, empower Panchayati Raj Institutions, and build resilient villages, making rural India an active driver of the Viksit Bharat 2047 vision.