Explained: How VB G RAM G differs from MNREGA in funding, duration and purpose? How new rural jobs scheme changes rules of employment?

The union government has proposed to replace MNREGA with VB G RAM G scheme. (File Image)

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When the Belgium-born Indian development economist Jean Dreze suggested launching the National Rural Employment Guarantee Act (NREGA) in 2005, the basic idea was to provide the much-needed job opportunities to the poorest of the poor so that they could have at least two square meals a day. However, the present government wants to replace it with a different scheme, Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin), or the BV G RAM G. An analysis shows that the two schemes have different components with different objectives, though both would provide job opportunities to the poor. 

General What is VB G RAM G?

The VB G RAM G scheme proposes fundamental restructures in the original employment scheme with potential far-reaching consequences. It changes the source of funds, character of the scheme, duration, time, and main purpose of the MNREGA. 

The Union government paid the entire amount under the original scheme launched by the then Prime Minister Manmohan Singh. The new scheme proposes that the fund be shared by the Union and the state governments. It says that in the Northeastern States, Himalayan States, and UTs with legislatures (Uttarakhand, Himachal Pradesh, and J&K), the state governments should pay 10% of the expenses and the remaining 90% be paid by the centre. A formula of 60:40 should be in place for other states and UTs. A 100% central funding should be available only for the UTs without a legislature. Thus, the state government will have to take responsibility for at least a part of the expenses. This will increase fiscal responsibility but will also put an extra burden on the states. 

General MNREGA vs Viksit Bharat

Under the MNREGA, the state governments were responsible for unemployment allowances, one-fourth of the material costs and state-level administrative expenses. 

Under the VB G RAM G, the Union government will make state-wise normative allocation every year. The normative allocation is the centre’s allocation. It has replaced the old system of the Labour Budget Mechanism under the MNREGA, where the states submitted the work plans, the funding was demand-driven and open-ended. In complete contrast to this, the VB G RAM G will be supply-driven and budget-capped. 

General Viksit Bharat G RAM scheme

In the MNREGA, there was a ceiling of 100 days of employment to each of the families due to software constraints, though there was no legal restriction. The VB G RAM G scheme guarantees jobs of 125 days instead. However, Section 3(4) of MGNREGA allows 150 days for certain Scheduled Tribe households in forest areas. Besides, 150 days of employment can be given to the Scheduled Tribes households in certain forest areas. 

Under the VB G RAM G scheme, no work was initiated or executed during the notified peak agriculture period. Each state must notify in advance a peak period of 60 days for sowing and harvesting activities. The authorities must ensure that all work takes place beyond this period. It reduces the scope of realising the 125 days of job opportunities.

General Rural jobs scheme 2025

Under the VB G RAM G, the states can halt public works jobs for 60 days every year, releasing the farm labourers for the sowing, harvesting, and other related works. While more hands will be available for the public works, it will also reduce wage inflation, which may lower the agriculture input costs. The new scheme may set priorities on developing rural roads, markets, climate-resilient works, and water-related works. The rural employment days will be increased 25%. If no employment is given, the people would get allowances. 

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