Overview of Legislative Changes in Rural Development

Recent legislative changes in India have replaced the MGNREGA framework with the VB-G RAM G Act, prompting significant concerns regarding both the manner of its passage and its implications on rural employment.

Concerns Over Passage and Implementation

• The Act was passed without pre-legislative public consultation or examination by parliamentary committees.
• There are claims that the new Act undermines the demand-driven nature of rural employment.

VB-G RAM G Act Details

• According to Section 5(1), the government must provide not less than 125 days of guaranteed wage employment per financial year to rural households whose adult members volunteer for unskilled manual work.
• The central government decides where the scheme is operational, potentially ending the universal rights previously offered by MGNREGA.

Issues with Demand-Driven Nature

• Section 4(5) suggests a shift from a demand-driven to a supply-constrained scheme.
• Fund allocation is defined as "normative allocation," which is determined by the central government.

Centre-State Fund Sharing Architecture

• The new framework requires states to be partners in development, but states face challenges due to cash constraints.
• MGNREGA previously provided substantial resources to states for rural employment and development needs.

Impact on Agricultural Seasons

• Work is banned during peak agricultural seasons to prevent labor shortages.
• State governments can notify 60 days in a financial year when work under the Bill will not be undertaken.

Implications for Rural Labor

• The welfare of large farmers may be prioritized over workers' rights to fair wages.
• MGNREGA had served as a minimum support wage mechanism for labor, which the new Act may threaten.

The VB-G RAM G Act's potential to transform rural employment dynamics raises concerns about increased inequality and political accountability among its architects.