Cutting off a rural lifeline and the Directive Principles

Context

• The Central Government has introduced a Bill to replace MGNREGA with Viksit Bharat–G RAM G Bill, 2025.

• The proposed Bill fundamentally alters the nature of MGNREGA, diluting its rights-based framework.

• Raises serious concerns regarding Directive Principles of State Policy (DPSPs) and federalism.

Constitutional Basis

• Article 41 (DPSP):

  • State shall make effective provision for the right to work, within its economic capacity.

• Constituent Assembly Debates:

  • Socialist members wanted the right to work as a Fundamental Right.

  • Capitalist lobby opposed → placed under DPSPs.

• Dr. B.R. Ambedkar:

  • DPSPs are “instruments of instruction” and essential for economic democracy.

• K.T. Shah:

  • Criticised DPSPs as “pious wishes” — a concern reflected today.

Role of the Left & Evolution of MGNREGA

• MGNREGA (2005) emerged due to:

  • 2004 political configuration: UPA dependent on Left support.

  • Left parties played a decisive role in shaping the law.

• Parliament adopted the Act unanimously.

Salient Features of MGNREGA

• Rights-based & demand-driven employment guarantee.

• 100 days of guaranteed work per rural household.

• Universal coverage for adults volunteering for manual labour.

• Equal wages for men and women.

• Entire wage cost borne by the Centre.

• States bear ~10% cost; Panchayats design & implement works.

• Strengthens federalism and grassroots democracy.

Key Changes Proposed in the New Bill

(a) From Demand-driven to Allocation-driven

• Employment based on normative financial allocations, not worker demand.

• Centre has no obligation beyond allocated funds.

(b) Fiscal Burden on States

• States to bear 40% of costs, despite fiscal stress and reduced tax devolution.

(c) Centralisation

• Project design, audits, and monitoring controlled by Centre.

• Undermines federal structure.

(d) Seasonal Work Prohibition

• Ban on work during peak agricultural season.

• Benefits large landowners; weakens workers’ bargaining power.

• Disproportionately impacts women workers.

(e) Digital Conditionalities

• Mandatory Aadhaar linkage and digital attendance.

• Ignores ground realities like poor connectivity → exclusion errors.

Social Justice Concerns

• Workforce composition:

  • Adivasis: ~18% (vs 8.6% population share)

  • SCs: ~19%

  • Over two-thirds from constitutionally protected groups

• Draft Bill removes their representation in advisory/redress councils.

• Seen as an attack on social justice and constitutional safeguards.

Performance Issues Since 2014

• Rising demand but stagnant funding:

  • Expenditure never exceeded 0.2% of GDP.

• 2024–25:

  • 8.9 crore demanded work; 99 lakh denied employment.

• Average workdays per household: <50 days (vs 100 days guaranteed).

• Wage arrears up to ₹8,000 crore.

• Proposal of 125 days seen as misleading.

Wider Implications

• Dilution of MGNREGA = erosion of DPSPs.

• Weakens:

  • Right to work

  • Federalism

  • Decentralisation

  • Social equity

• Reflects growing agrarian distress and lack of employment alternatives.

Conclusion

• MGNREGA is not merely a welfare scheme but a constitutional commitment.

• Replacing it with a constrained, centralised framework amounts to:

  • “Rights theft”

  • Undermining economic democracy

• The Bill must be examined by a Parliamentary Standing Committee.

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