Congress to Protest New Rural Job Act, Citing Threat to MGNREGA

Congress launches nationwide agitation against new Viksit Bharat G-RAM-G Act, replacing MGNREGA.

Photo by Markus Spiske

The Congress party is launching a nationwide agitation, "MGNREGA Bachao Andolan," starting January 5, against the new Viksit Bharat G-RAM-G legislation. This new Act replaces the UPA-era rural employment guarantee program, MGNREGA.

The party, led by Mallikarjun Kharge and Rahul Gandhi, argues that the new law undermines the federal structure and the constitutional right to work for the rural poor, equating it to "demonetisation." They highlight that even NITI Aayog had acknowledged MGNREGA's role in creating durable assets. The core concern is that the new legislation increases State government liability and attacks a rights-based framework lauded globally.

Key Facts

Viksit Bharat G-RAM-G legislation replaces MGNREGA

Congress agitation starts January 5

NITI Aayog previously endorsed MGNREGA's benefits

UPSC Exam Angles

Constitutional provisions related to Right to Work (DPSP, Fundamental Rights)

Federalism and Centre-State financial relations

Social welfare schemes and their impact on poverty alleviation and rural development

Role of NITI Aayog in policy formulation and evaluation

Rights-based approach vs. welfare approach in governance

Visual Insights

MGNREGA vs. Viksit Bharat G-RAM-G (Proposed)

This table highlights the key differences and concerns raised by the Congress party regarding the proposed Viksit Bharat G-RAM-G legislation compared to the existing MGNREGA, which it aims to replace. It directly addresses the 'threat' cited in the news.

Feature	MGNREGA (Existing)	Viksit Bharat G-RAM-G (Proposed/Alleged)
Legal Basis	Statutory right (MGNREGA Act 2005), legally guarantees employment.	New legislation, perceived to dilute rights-based framework.
Employment Guarantee	Guarantees 100 days of unskilled manual work per household per year.	Unclear if it retains a legal guarantee; concerns about shifting to a discretionary scheme.
Funding Share (Centre:State)	Centre bears 100% unskilled labour cost, 75% material cost.	Alleged to increase State government liability, implying a higher state share.
State Liability	States primarily implement, Centre largely funds wages.	Increased financial and administrative burden on states, undermining federal structure.
Rights-Based Framework	Globally lauded for providing a legal 'right to work' and social safety net.	Criticized for attacking this rights-based framework, potentially making it 'scheme-based'.
Implementation Focus	Poverty alleviation, asset creation, rural livelihood security.	Likely aligned with 'Viksit Bharat' vision, potentially more focus on specific asset types or skill development, less on universal entitlement.

Evolution of Rural Employment Guarantee & Current Debate

This timeline traces the key milestones in India's rural employment guarantee programs, from their inception to the current debate surrounding the proposed Viksit Bharat G-RAM-G legislation.

The journey of rural employment guarantee in India began with NREGA in 2005, evolving into MGNREGA as a flagship social security program. Its significance was particularly highlighted during the COVID-19 pandemic. The current proposed legislation marks a potential significant shift from this established rights-based framework, leading to widespread political debate and protests.

2005National Rural Employment Guarantee Act (NREGA) passed, guaranteeing 100 days of work.
2009NREGA renamed to Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
2015NITI Aayog replaces Planning Commission, emphasizing cooperative federalism and outcome-based monitoring.
2020-2022MGNREGA demand surges during COVID-19 pandemic due to reverse migration and job losses.
2021Introduction of National Mobile Monitoring System (NMMS) App for real-time attendance in MGNREGA.
2023-2024Ongoing debates on MGNREGA budget allocations, wage payment delays, and shift towards material-intensive works.
Dec 2025News breaks about proposed 'Viksit Bharat G-RAM-G legislation' to replace MGNREGA.
Jan 2026Congress launches 'MGNREGA Bachao Andolan' nationwide protest against the new legislation.

More Information

Background

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, is a flagship social welfare program of the Indian government. It guarantees 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 rights-based, demand-driven scheme aimed at enhancing livelihood security in rural areas, reducing distress migration, and creating durable assets. The scheme is primarily funded by the central government, with states bearing a share of material costs and unemployment allowances.

Latest Developments

The Congress party is protesting a new legislation, 'Viksit Bharat G-RAM-G', which is reportedly set to replace MGNREGA. The party alleges that this new Act will undermine the federal structure, increase the financial liability of state governments, and dilute the 'rights-based' framework of rural employment, potentially impacting the constitutional 'right to work' for the rural poor. They have equated this move to 'demonetisation', highlighting concerns about its potential disruptive and negative socio-economic consequences.

Practice Questions (MCQs)

1. With reference to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), consider the following statements: 1. It guarantees 100 days of wage employment in a financial year to every adult member of a rural household. 2. The central government bears the entire cost of wages for unskilled manual workers, while state governments bear the material costs. 3. If employment is not provided within 15 days of application, applicants are entitled to an unemployment allowance. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: C

Statement 1 is incorrect as MGNREGA guarantees 100 days of wage employment to 'every rural household' (not every adult member), whose adult members volunteer to do unskilled manual work. Statement 2 is incorrect. The central government bears 100% of the wage cost for unskilled labour, but the material cost (including skilled and semi-skilled workers' wages) is shared between the Centre and States, typically in a 75:25 ratio. Statement 3 is correct. As per the Act, if employment is not provided within 15 days of submitting the application or from the date when work is demanded, an unemployment allowance must be paid.

2. The recent protest against the 'Viksit Bharat G-RAM-G legislation' replacing MGNREGA highlights concerns about undermining the federal structure. In the context of Indian federalism, which of the following statements is most appropriate regarding the financial relations between the Union and States?

A.The Union government has exclusive power to legislate on all matters related to social welfare and employment generation.
B.States have complete autonomy in raising and spending funds for schemes listed in the State List of the Seventh Schedule.
C.Centrally Sponsored Schemes often involve significant financial contributions from states, impacting their fiscal autonomy.
D.The Finance Commission primarily recommends the distribution of legislative powers between the Union and States.

Show Answer

Answer: C

Option A is incorrect; social welfare and employment generation often fall under the Concurrent List or involve both Union and State responsibilities. Option B is incorrect; even for State List subjects, states' financial autonomy can be constrained by central grants, shared taxes, and centrally sponsored schemes. Option C is correct. Centrally Sponsored Schemes (CSS), like MGNREGA (which is a CSS), are implemented by states but largely funded by the Centre, with states also contributing a significant share, especially for material components. Changes in such schemes, particularly increasing state liability, directly impact their fiscal autonomy and can be seen as undermining federal balance. Option D is incorrect; the Finance Commission primarily recommends the distribution of financial resources (taxes, grants-in-aid) between the Union and States, not legislative powers.

3. Consider the following statements regarding the 'Right to Work' in the Indian Constitution: 1. Article 21 of the Constitution explicitly guarantees the 'Right to Work' as a fundamental right. 2. Article 41, a Directive Principle of State Policy, mandates the State to make effective provision for securing the right to work. 3. MGNREGA is considered a legislative step towards operationalizing the 'Right to Work' for the rural poor. Which of the statements given above is/are correct?

A.1 and 2 only
B.2 and 3 only
C.1 and 3 only
D.1, 2 and 3

Show Answer

Answer: B

Statement 1 is incorrect. Article 21 guarantees the 'Right to Life and Personal Liberty', which through judicial interpretation has been expanded to include the right to live with human dignity, but it does not explicitly guarantee the 'Right to Work' as a fundamental right. Statement 2 is correct. Article 41 of the DPSP states that 'The State shall, within the limits of its economic capacity and development, make effective provision for securing the right to work, to education and to public assistance in certain cases.' Statement 3 is correct. MGNREGA provides a legal guarantee of employment, thereby operationalizing the spirit of the 'Right to Work' for a specific segment of the population, aligning with the objectives of Article 41.

4. Which of the following statements is NOT correct regarding the NITI Aayog?

A.It replaced the Planning Commission in 2015.
B.Its primary role is to act as a 'think tank' providing strategic and technical advice to the Central and State governments.
C.The Chief Ministers of all States and Lieutenant Governors of Union Territories are members of its Governing Council.
D.It has the power to allocate funds to ministries and states, similar to its predecessor.

Show Answer

Answer: D

Statement D is NOT correct. Unlike the Planning Commission, NITI Aayog does not have the power to allocate funds to ministries and states. This power largely rests with the Ministry of Finance. Statements A, B, and C are correct. NITI Aayog was indeed established in 2015, functions as a think tank, and its Governing Council includes Chief Ministers and LGs, promoting cooperative federalism.