Bhubaneswar: The proposed VB-G Ram G Bill marks a significant departure from the structure of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), particularly in terms of funding responsibility, allocation norms and operational flexibility. The Bill introduces a cost-sharing model, replaces open-ended funding with a normative allocation system, and allows a pause in employment during peak agricultural seasons.
Centre–State Cost Sharing Replaces Full Central Funding
One of the most consequential changes in the Bill relates to wage payments. Unlike MGNREGS, under which the Centre bears the entire wage cost, the VB-G Ram G scheme requires states to share the financial burden.
As per Section 22(2) of the Bill, the funding pattern will be:
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90:10 (Centre:State) for Northeastern states, Himalayan states and select Union Territories including Uttarakhand, Himachal Pradesh, and Jammu & Kashmir
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60:40 for all other states and Union Territories with legislatures
This marks a structural shift, potentially increasing fiscal pressure on states with limited resources, while reducing the Centre’s expenditure liability.
Normative Allocation Replaces Open-Ended Labour Budget
The Bill also ends the concept of an open-ended labour budget. Under Section 4(5), the Central Government will determine a state-wise “normative allocation” every financial year based on objective parameters prescribed by the Centre.
Crucially, the Bill specifies that:
“Any expenditure incurred by a State in excess of its normative allocation shall be borne by the State Government.”
This provision effectively caps central funding and transfers the risk of higher demand for employment to state governments, raising concerns about the scheme’s ability to respond to distress-driven spikes in rural job demand.
Employment Guarantee Can Be Paused During Peak Farm Seasons
Another notable provision allows for a temporary suspension of work under the scheme during peak agricultural seasons. The stated objective is to ensure adequate availability of labour for farming activities.
The Bill states:
“No work shall be commenced or executed under this Act during such peak seasons as may be notified…”
While the government argues this will prevent labour shortages in agriculture, critics say it weakens the core idea of a guaranteed right to work, especially in regions where agricultural employment itself is seasonal and uncertain.
Weekly Wage Payments Promised
On the positive side, the Bill introduces faster wage disbursement. Workers are to be paid on a weekly basis, or at the latest within a fortnight of completing work. This improves upon MGNREGS, where delays of several weeks are common despite a 15-day legal limit.
A Fundamental Shift in Employment Guarantee Philosophy
Taken together, the provisions signal a clear shift in the philosophy of rural employment support—from an entitlement-based, demand-driven model to a budget-controlled, state-shared framework. While the Bill aims to improve fiscal discipline, labour availability and payment efficiency, it also raises concerns over reduced coverage, uneven implementation across states and dilution of the employment guarantee.
As the VB-G Ram G Bill moves forward, its impact will depend heavily on how normative allocations are calculated, how peak seasons are notified, and whether states can shoulder the additional financial and administrative burden without compromising rural livelihoods.
-OdishaAge
