New job guarantee Bill needed greater debate, legislative oversight

Context & The Gist

The article discusses the recent passage of the VB-G RAM G Bill, which aims to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The core issue is the lack of thorough debate and legislative oversight, specifically the Bill not being referred to a parliamentary committee despite its significant implications for rural employment and fiscal federalism. The article highlights concerns about the shift from a demand-driven to a supply-driven scheme and the increased financial burden on states.

Key Arguments & Nuances

• The government’s decision to bypass a parliamentary committee for scrutiny is criticized, especially considering the scale of MGNREGA (covering 6 crore households).
• While acknowledging the Modi government’s success in streamlining MGNREGA and ensuring funds reach beneficiaries, the article questions the haste in replacing it.
• The VB-G RAM G Bill represents a significant departure from MGNREGA by shifting from a demand-driven (bottom-up) to a supply-driven (top-down) approach, where the Centre determines fund allocation.

• The new 60:40 funding ratio between the Centre and states (except for North-Eastern and Himalayan states) is seen as a potential burden on already financially stressed states.

• The article draws parallels to the handling of the farm laws, where a similar lack of consultation led to controversy.

UPSC Syllabus Relevance

• GS Paper II: Polity & Governance – Government Policies & Welfare Schemes, Centre-State relations, Role of Parliamentary Committees.
• GS Paper III: Economy – Government Budgeting, Inclusive Growth, Issues related to Poverty and Unemployment.
• GS Paper II: Governance – Issues relating to development and management of Social Sector/services relating to Health, Education, and Employment.

Prelims Data Bank

• MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): Launched in 2005, guarantees 100 days of wage employment to rural households.
• VB-G RAM G Bill (Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission Grameen): Aims to provide 125 days of guaranteed wage employment.
• NREGASoft MIS Platform: A platform used for seeding Aadhaar-linked bank accounts for MGNREGA beneficiaries.
• Article 280(3) of the Constitution: Deals with the Finance Commission and its role in recommending principles governing the distribution of tax revenues between the Union and the States. (Relevant to the discussion on fiscal federalism).

Mains Critical Analysis

The passage of the VB-G RAM G Bill without adequate parliamentary scrutiny raises significant concerns about the quality of legislative processes in India. The shift from a demand-driven to a supply-driven scheme, coupled with the altered funding ratio, has several implications:

Political (P)

The lack of debate and the absence of key political figures during the Bill’s passage suggest a disregard for consensus-building. This could exacerbate Centre-State tensions, particularly in states opposed to the changes. The comparison to the farm laws highlights a pattern of pushing through legislation without sufficient consultation.

Economic (E)

The 60:40 funding ratio could strain state finances, potentially leading to reduced implementation of the scheme or a compromise in wage rates. This could negatively impact rural incomes and employment levels. The shift to a normative allocation also risks misallocation of funds, failing to address localized needs effectively.

Social (S)

MGNREGA has been a crucial safety net for vulnerable rural populations. Changes that weaken the scheme could exacerbate poverty and inequality. The demand-driven nature of MGNREGA empowered rural communities; a supply-driven approach could diminish this agency.

Technological (T)

While the Bill incorporates technological advancements like biometric authentication and AI fraud detection, these are not the core issue of contention. The fundamental concern lies with the structural changes to the scheme’s design and funding.

Legal (L)

The Bill’s passage raises questions about the extent of legislative oversight and the importance of referring significant legislation to parliamentary committees. It also highlights the potential for legal challenges based on principles of fiscal federalism.

Environmental (E)

While not directly related, the assets created under MGNREGA often have environmental implications (water conservation, afforestation). Changes to the scheme could impact the quality and sustainability of these assets.

Value Addition

• National Advisory Council (NAC): During the UPA regime, the NAC played a crucial role in drafting and shaping the MGNREGA.
• PUCL vs. Union of India (2001): This SC case affirmed the right to food as a fundamental right, indirectly strengthening the rationale for schemes like MGNREGA.
• Best Practice: The success of MGNREGA in states like Rajasthan and Andhra Pradesh demonstrates the importance of effective implementation and community participation.

Context & Linkages

This past article provides a more detailed analysis of the VB-G RAM G Bill’s provisions, particularly the shift in funding and the potential impact on state finances. It reinforces the concerns raised in the current article about the Bill fraying the existing safety net despite the need for reform. It also highlights the government’s previous success in generating employment under MGNREGA.

This article further emphasizes the fundamental shift from a demand-based to a supply-driven framework under the VB-G RAM G Bill. It highlights the opposition from states like Tamil Nadu and Kerala, who view the Bill as undermining states’ interests. The article also points out the limited utilization of the full 100 days of work under MGNREGA, suggesting that the focus should be on improving implementation rather than fundamentally altering the scheme.

The Way Forward

• Re-refer the Bill to a Parliamentary Committee: Ensure thorough scrutiny and incorporate feedback from experts and stakeholders.
• Maintain the Demand-Driven Nature of the Scheme: Empower local communities to determine their employment needs.
• Reconsider the Funding Ratio: Maintain the Centre’s full responsibility for wage costs to avoid burdening states.
• Strengthen Implementation: Focus on improving transparency, accountability, and grievance redressal mechanisms.
• Promote Diversification of Rural Livelihoods: Complement wage employment with skill development and entrepreneurship opportunities.