Controversy Erupts: Government's MGNREGA Replacement Plan Sparks Debate Over a Northern Language Identity.

The Indian government's proposal to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) with a new rural employment law, the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, has ignited a firestorm of controversy. The bill, often referred to as VB-G RAM G, has drawn criticism primarily due to the removal of Mahatma Gandhi's name and concerns over potential shifts in the program's structure and funding.

The proposed legislation aims to establish a "modern statutory framework aligned with Viksit Bharat 2047," guaranteeing 125 days of wage employment per financial year to rural households whose adult members volunteer for unskilled manual labor. This is an increase from the 100 days guaranteed under MGNREGA. The government argues that the new bill addresses structural weaknesses in MGNREGA while enhancing employment, transparency, planning, and accountability. The VB-G RAM G will focus on water security, core rural infrastructure, livelihood-related infrastructure, and climate adaptation.

However, the opposition has strongly criticized the move, raising concerns about the removal of Mahatma Gandhi's name from a scheme dedicated to him. Critics, including Congress leaders, have slammed the decision as a "BJP-RSS conspiracy" to dismantle the rural employment scheme. They argue that the government's gestures of homage to Mahatma Gandhi are "hollow and hypocritical".

Beyond the name change, significant concerns revolve around the shift in funding patterns. MGNREGA was fully funded by the central government for unskilled wages, whereas the VB-G RAM G will be implemented as a centrally sponsored scheme with a 60:40 Centre-state fund-sharing ratio for most states. Northeastern and Himalayan states will have a 90:10 ratio. The opposition contends that this change will burden states financially, particularly those already struggling.

Another point of contention is the shift from a demand-driven to a supply-driven model. Under MGNREGA, rural households are legally entitled to work on demand, with unemployment allowance if work isn't provided within 15 days. The VB-G RAM G bill introduces a "normative allocation," where the central government determines state-wise allocations based on pre-defined parameters. Critics fear that this will weaken workers' legal right to employment, making it a discretionary scheme controlled by the Centre.

The bill also mandates a 60-day "no work period" during peak agricultural seasons. While the government argues this will ensure adequate labor for farming, activists worry about the impact on tribal and marginalized communities where MGNREGA work supports agriculture-related activities.

Despite the controversies, the government maintains that the VB-G RAM G bill will strengthen rural livelihoods and promote economic resilience. They highlight the increase in guaranteed employment days from 100 to 125, the focus on strategic infrastructure development, and the use of technology to enhance efficiency and transparency. The bill also emphasizes weekly wage payments and convergence with other development schemes.

As the bill is debated in Parliament, the controversy surrounding the name change and the structural shifts underscores the importance of rural employment programs in India and the need for careful consideration of any changes that could impact the lives of millions of rural workers.


Written By
Gaurav Khan is a seasoned business journalist specializing in market trends, corporate strategy, and financial policy. His in-depth analyses and interviews offer clarity on emerging business landscapes. Gaurav’s balanced perspective connects boardroom decisions to their broader economic impact. He aims to make business news accessible, relevant, and trustworthy.
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