Karnataka Legislature to Discuss Economic Impact of VB-G RAM G Act

Karnataka legislature to discuss the economic impact of the VB-G RAM G Act.

Photo by Markus Spiske

The Congress government in Karnataka has convened a joint session of the state legislature from January 22 to January 31 to discuss the economic impact of the Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The session will commence with the Governor’s address, and further proceedings will be decided by the Speaker and the Business Advisory Committee. The government aims to create awareness about the social and economic impact of the new legislation. Several states, including Punjab and Tamil Nadu, have expressed their opposition to the new law.

Key Facts

Session dates: January 22-31

Discussion: Economic impact of VB-G RAM G Act

VB-G RAM G Act: Replaces MGNREGA

States opposing: Punjab, Tamil Nadu

UPSC Exam Angles

GS Paper II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS Paper III: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

Potential question types: Analyzing the socio-economic impact of employment guarantee schemes, evaluating the effectiveness of MGNREGA, and comparing different approaches to rural employment generation.

Visual Insights

Evolution of Rural Employment Guarantee Schemes in India

Timeline showing the evolution of rural employment guarantee schemes in India, culminating in the VB-G RAM G Act, 2025.

India has a long history of rural employment programs aimed at poverty alleviation and providing livelihood security. MGNREGA was a landmark legislation in this regard, guaranteeing 100 days of wage employment. The VB-G RAM G Act represents a shift in the approach to rural employment.

1972Pilot Intensive Rural Employment Project (PIREP) initiated.
1980National Rural Employment Programme (NREP) launched.
1989Jawahar Rozgar Yojana (JRY) introduced by merging NREP and RLEGP.
1993Employment Assurance Scheme (EAS) launched.
2005Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) enacted.
2009NREGA renamed as MGNREGA.
2015Increased focus on asset creation under MGNREGA.
2020MGNREGA played a crucial role during the COVID-19 pandemic, providing employment to returning migrants.
2025Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act replaces MGNREGA.
2026Karnataka Legislature discusses the economic impact of VB-G RAM G Act.

More Information

Background

The genesis of MGNREGA can be traced back to pilot programs in the 1970s aimed at providing employment in drought-prone areas. The Employment Assurance Scheme (EAS) launched in 1993, and the Sampoorna Grameen Rozgar Yojana (SGRY) in 2001, were precursors. The National Food for Work Programme in 2004 further paved the way.

MGNREGA, enacted in 2005, marked a significant shift by legally guaranteeing 100 days of wage employment to rural households. Its initial implementation covered 200 districts, expanding nationwide by 2008. The Act aimed to address rural poverty, enhance livelihood security, and create durable assets.

Over the years, MGNREGA has faced scrutiny regarding implementation challenges, wage delays, and asset quality, leading to debates about its effectiveness and potential reforms.

Latest Developments

In recent years, MGNREGA has seen increased demand due to economic disruptions caused by the COVID-19 pandemic, highlighting its role as a safety net. Debates have intensified regarding the adequacy of wages, the scope of permissible works, and the need for better convergence with other rural development programs. There's growing emphasis on leveraging technology for improved monitoring, transparency, and grievance redressal.

Discussions around transitioning MGNREGA from a demand-driven to a more supply-side approach, focusing on skill development and long-term employment generation, have also gained traction. The future trajectory involves exploring innovative financing mechanisms, promoting sustainable livelihoods, and enhancing the program's contribution to climate change adaptation and mitigation.

Practice Questions (MCQs)

1. Consider the following statements regarding the Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025, and its potential impact: 1. It aims to replace MGNREGA with a focus on skill development and long-term employment generation. 2. The Act has received unanimous support from all state governments due to its innovative approach. 3. The Act proposes a shift from demand-driven employment to a supply-side model. Which of the statements given above is/are correct?

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

Show Answer

Answer: B

Statement 1 is correct as the VB-G RAM G Act aims to replace MGNREGA with a focus on skill development. Statement 3 is also correct as the Act proposes a shift to a supply-side model. Statement 2 is incorrect as several states have expressed opposition.

2. Which of the following is NOT a stated objective of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)?

A.Enhancing livelihood security of rural households
B.Providing at least 100 days of guaranteed wage employment in a financial year
C.Creating durable assets in rural areas
D.Providing unemployment allowance to urban youth

Show Answer

Answer: D

MGNREGA focuses on rural households and does not provide unemployment allowance to urban youth. The other options are stated objectives of the Act.

3. Assertion (A): The Karnataka legislature is discussing the economic impact of the Viksit Bharat- Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025. Reason (R): Several states have raised concerns about the potential implications of the new legislation on their existing rural employment programs. In the context of the above statements, which of the following is correct?

A.Both A and R are true, and R is the correct explanation of A
B.Both A and R are true, but R is NOT the correct explanation of A
C.A is true, but R is false
D.A is false, but R is true

Show Answer

Answer: B

Both the assertion and the reason are true. The Karnataka legislature is indeed discussing the Act, and several states have raised concerns. However, the reason is not a direct explanation of why Karnataka is discussing the Act; it's a contributing factor but not the sole reason.