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28 Dec 2025·Source: The Indian Express
2 min
EconomySocial IssuesPolity & GovernanceNEWS

Congress to Protest New Job Law Replacing MGNREGA from January 5

Congress launches nationwide protest against new VB-G RAM G Act, replacing MGNREGA, citing rural economy concerns.

Congress to Protest New Job Law Replacing MGNREGA from January 5

Photo by BoliviaInteligente

The Congress party is set to launch a nationwide campaign from January 5 against the newly introduced VB-G RAM G Act, 2025, which replaces the UPA-era Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Leader of Opposition Rahul Gandhi stated that the decision to scrap MGNREGA was made directly by the Prime Minister's Office without Cabinet consultation, and warned that replacing the scheme would harm the rural economy. This move signals a major policy shift in rural employment generation and welfare, potentially impacting millions of rural households who relied on MGNREGA for guaranteed wage employment.

मुख्य तथ्य

1.

Congress campaign against VB-G RAM G Act, 2025 starts January 5

2.

VB-G RAM G Act replaces MGNREGA

3.

Rahul Gandhi alleges PMO scrapped MGNREGA without Cabinet consultation

UPSC परीक्षा के दृष्टिकोण

1.

Economic implications of rural employment schemes (demand generation, poverty alleviation, wage rates)

2.

Policy formulation and legislative process (Cabinet consultation, PMO's role, parliamentary scrutiny)

3.

Social justice and welfare programs (right to work, social safety nets, vulnerable sections)

4.

Fiscal federalism and funding patterns of central schemes

5.

Constitutional provisions related to welfare and employment (Directive Principles of State Policy)

दृश्य सामग्री

Evolution of Rural Employment Policy: From MGNREGA to VB-G RAM G Act, 2025

This timeline illustrates the key milestones in India's rural employment guarantee scheme, highlighting the recent policy shift with the introduction of the VB-G RAM G Act, 2025, and the subsequent political protest.

MGNREGA, a flagship UPA-era scheme, provided a legal right to work for rural households. Its replacement by the VB-G RAM G Act, 2025, marks a significant policy shift, sparking political controversy over both the policy's substance and the process of its introduction, particularly the alleged bypassing of Cabinet consultation.

  • 2005National Rural Employment Guarantee Act (NREGA) enacted on August 25, guaranteeing 100 days of wage employment.
  • 2009NREGA renamed Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) on October 2.
  • 2014-19Debates on MGNREGA's effectiveness, asset quality, and wage payment delays intensify under new government.
  • 2020-21MGNREGA plays a crucial role as a social safety net during the COVID-19 pandemic, seeing unprecedented demand and increased budget allocation.
  • 2023-24Continued discussions on expanding MGNREGA to urban areas and increasing guaranteed work days; concerns over budget cuts and wage stagnation.
  • 2025 (Dec)News breaks about the introduction of the VB-G RAM G Act, 2025, replacing MGNREGA, reportedly without Cabinet consultation.
  • 2026 (Jan 5)Congress party announces nationwide protests against the new VB-G RAM G Act, 2025, citing harm to the rural economy.

MGNREGA's Scale and Impact (FY 2024-25 Estimates)

This dashboard highlights the significant scale and impact of MGNREGA, a scheme now being replaced, underscoring the potential implications of the policy shift on rural livelihoods and the economy. Data is estimated for the full financial year 2024-25 based on trends.

Total Budget Allocation
₹75,000 Cr+15% (YoY)

Despite debates, MGNREGA continued to receive substantial funding, reflecting its importance. The new Act's funding will be critical.

Person-Days Generated
300 Crore+10% (YoY)

Represents the actual employment provided. A high number indicates significant demand and reliance on the scheme.

Households Benefitted
8.5 Crore+5% (YoY)

Shows the vast reach of the scheme, impacting a large segment of rural India's population.

Women's Participation
58%Stable

MGNREGA mandates 1/3rd women beneficiaries, but actual participation often exceeds this, empowering rural women.

और जानकारी

पृष्ठभूमि

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, is a flagship social security and labour law that aims to guarantee the 'right to work' by providing 100 days of wage employment in a financial year to adult members of any rural household willing to do unskilled manual work. It is a demand-driven scheme, legally backed, and has been instrumental in poverty alleviation, rural asset creation, and women's empowerment. It is considered one of the largest social welfare programs in the world.

नवीनतम घटनाक्रम

The news highlights the proposed replacement of MGNREGA with a new legislation, the VB-G RAM G Act, 2025. This move has sparked political controversy, with the Congress party protesting the decision, citing lack of Cabinet consultation and potential harm to the rural economy. This signifies a major policy shift in rural employment generation and welfare, with potential far-reaching implications for millions of rural households.

बहुविकल्पीय प्रश्न (MCQ)

1. Consider the following statements regarding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): 1. It provides a legal guarantee for 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work. 2. The scheme is entirely funded by the Central Government, with states responsible only for implementation. 3. The Gram Panchayat is responsible for identifying beneficiaries, issuing job cards, and sanctioning projects. 4. At least one-third of the beneficiaries must be women.

उत्तर देखें

सही उत्तर: B

Statement 1 is correct. MGNREGA guarantees 100 days of wage employment. Statement 2 is incorrect. The Central Government bears the full cost of wages for unskilled manual workers and 75% of the material cost, while the State Governments bear the cost of unemployment allowance, 25% of the material cost, and administrative expenses. Statement 3 is correct. Gram Panchayats play a crucial role in implementation. Statement 4 is correct. The Act mandates that at least one-third of the beneficiaries shall be women.

2. In the context of rural employment generation schemes in India, which of the following statements best describes the 'right to work' as enshrined or implied in such legislations? A) It is a Fundamental Right guaranteed under Article 21 of the Constitution, ensuring employment for all citizens. B) It is a Directive Principle of State Policy, which the state endeavors to secure within its economic capacity. C) It is a statutory right, legally enforceable for specific categories of work and duration, as provided by law. D) It is a customary right, traditionally recognized in rural communities, without any legal backing.

उत्तर देखें

सही उत्तर: C

Option C is correct. While the 'right to work' is a Directive Principle of State Policy (Article 41), it is not a Fundamental Right. MGNREGA converts this aspirational DPSP into a statutory right, making it legally enforceable for 100 days of unskilled manual work for eligible rural households. Option A is incorrect as it's not a Fundamental Right. Option B is partially correct as it's a DPSP, but MGNREGA goes further to make it a statutory right. Option D is incorrect as it has legal backing.

3. Which of the following could be a potential economic implication of replacing a demand-driven employment guarantee scheme like MGNREGA with a new, potentially supply-driven or more targeted job law? 1. Reduction in rural household income and increased distress migration. 2. Decline in aggregate demand in rural areas, impacting local economies. 3. Increased focus on skill development and creation of more durable assets. 4. Greater fiscal burden on the central government due to expanded coverage.

उत्तर देखें

सही उत्तर: C

Statements 1 and 2 are potential negative implications if the new scheme is less effective or less comprehensive than MGNREGA. A reduction in guaranteed employment could lead to lower incomes and reduced demand. Statement 3 is a potential positive implication or an intended goal of a new scheme, aiming for better asset creation and skill enhancement. Statement 4 is unlikely to be a direct implication of replacing a scheme; a new scheme might aim to reduce fiscal burden or reallocate it, not necessarily increase it due to expanded coverage unless explicitly designed that way. The question asks for 'potential implications', and a new scheme could aim for efficiency, which might involve better targeting and skill development, but could also lead to reduced coverage or benefits for some.

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