The end of MGNREGS
India, Dec. 18 -- The Union government sprang a surprise in Parliament this week by introducing the Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin) or VB-G RAM G, to replace the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), a showpiece of the previous UPA administration. Beyond the obvious political overtones in renaming a project that once netted the Congress rich electoral dividends and engineering an abbreviation with ideological alignment with the ruling coalition, three aspects of the debate merit discussion.
One, the proposal expands the statutory guarantee of wage employment in every financial year from 100 days to 125 days, a welcome development in a country where chunks of the rural population move between relative comfort and destitution with alarming regularity. The bill suggests paying an allowance within 15 days of application of work, potentially easing chronic delays in payments. It delineates clear focus areas for asset creation such as water security or climate adaptation, a good step for a programme where the quality of assets is sometimes sub-par. And it mandates regular audits, fraud detection, GPS and mobile-based monitoring - which could be of help in a scheme where allegations of corruption are rife.
Two, the bill proposes sharing of financial liability between the Centre and the states in a 90:10 ratio for northeastern and Himalayan states, and 60:40 for other states and Union territories with a legislature. Plus, any additional spends - MGNREGS was demand driven, which meant that the Centre paid if additional work demand was made - will be borne by the state government. This might ease central finances (the wage cost of MGNREGS was fully funded by the Centre, with states chipping in for the material cost), but it is unclear if this is sustainable for any state against a backdrop where even rich provinces such as Maharashtra are struggling to balance their books. It is also unclear where poor states, where the demand for work is high, will find the money. This newspaper has expressed concern over profligate spending by states - across the political spectrum - on freebies and poll sops. This cannot be allowed to hurt the scheme.
Three, VB-G RAM G's design - where the Centre, based on objective parameters it prescribes, determines the state-wise normative allocation for each financial year - sets the stage for more friction between the Centre and states not ruled by the BJP.
Despite all its faults, MGNREGS was an important pillar for the rural economy for two decades, both as a cushion for the poor in good years and a lifeline in moments of distress such as demonetisation or after the pandemic. It buoyed peasants, set a floor for rural wages, and just like the PM-Anna Yojana, worked as a safety net. Politics should not overwhelm its core mission. VB-G RAM G should aim to do more....
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