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30 Jan 2026·Source: The Indian Express
3 min
EconomySocial IssuesPolity & GovernanceNEWS

MGNREGA's Success: V-B-G-RAMG Signals Policy Shift in Rural Employment

MGNREGA's achievements and the V-B-G-RAMG framework mark a significant shift in rural employment policy.

The article highlights the significant achievements of MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) and introduces the V-B-G-RAMG (Village-Based-Group-Revolving-Asset-Management-Guarantee) framework as a decisive shift in rural job policy. MGNREGA has provided crucial employment opportunities and livelihood support in rural areas. The V-B-G-RAMG framework represents a move towards more sustainable and community-driven asset management, aiming to enhance the long-term impact of rural employment programs. This shift emphasizes local participation and asset creation to improve rural livelihoods and reduce dependence on wage employment alone.

Key Facts

1.

MGNREGA: Significant employment and livelihood support

2.

V-B-G-RAMG: Shift towards sustainable asset management

3.

Emphasis: Local participation and asset creation

UPSC Exam Angles

1.

GS Paper 2: Government policies and interventions for development in various sectors

2.

GS Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment

3.

Potential question types: Evaluating the impact of MGNREGA, analyzing the V-B-G-RAMG framework

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More Information

Background

The roots of MGNREGA can be traced back to pilot programs like the Employment Guarantee Scheme (EGS) in Maharashtra in the 1970s. This scheme aimed to provide guaranteed wage employment to rural households. The success of EGS influenced the national discourse on poverty alleviation and employment generation.

Several committees and commissions, including the Hanumantha Rao Committee in 1984, recommended a nationwide employment guarantee program. The National Food for Work Programme, launched in 2004, served as a precursor to MGNREGA. Finally, the MGNREGA was enacted in 2005, marking a significant shift towards a rights-based approach to rural employment, legally obligating the government to provide employment to those who demand it.

Latest Developments

In recent years, MGNREGA has faced challenges related to timely wage payments and budgetary allocations. There have been debates regarding the effectiveness of the scheme in creating durable assets and its impact on agricultural labor availability. The government has been focusing on improving the convergence of MGNREGA with other rural development programs, such as the National Rural Livelihoods Mission (NRLM), to enhance its impact.

There's also a growing emphasis on using technology for better monitoring and implementation of the scheme, including the use of geo-tagging of assets and direct benefit transfer (DBT) for wage payments. The future outlook involves strengthening the scheme's focus on water conservation and climate resilience.

Frequently Asked Questions

1. What are the key facts about MGNREGA and V-B-G-RAMG for the UPSC Prelims exam?

MGNREGA provides employment and livelihood support in rural areas. V-B-G-RAMG is a framework shifting towards sustainable, community-driven asset management. The emphasis is on local participation and asset creation to improve rural livelihoods.

Exam Tip

Focus on the full forms and objectives of both MGNREGA and V-B-G-RAMG. Understand the shift in focus from wage employment to asset creation.

2. What is MGNREGA and why is it important for rural development?

MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) is a scheme that provides employment opportunities and livelihood support in rural areas. It is important because it aims to reduce poverty and improve the standard of living in rural India by guaranteeing wage employment.

3. How does the V-B-G-RAMG framework differ from traditional MGNREGA implementation?

V-B-G-RAMG emphasizes sustainable and community-driven asset management, whereas traditional MGNREGA implementation primarily focuses on wage employment. V-B-G-RAMG aims to enhance the long-term impact of rural employment programs through local participation and asset creation, reducing dependence on wage employment alone.

4. What are the potential benefits and drawbacks of the V-B-G-RAMG framework?

The potential benefits include sustainable asset creation, increased community ownership, and reduced dependence on wage employment. Potential drawbacks might include challenges in implementation, ensuring equitable distribution of benefits, and the need for effective monitoring and evaluation.

5. Why is MGNREGA and the shift to V-B-G-RAMG in the news recently?

MGNREGA is in the news due to discussions about its achievements, challenges related to wage payments, and budgetary allocations. The introduction of the V-B-G-RAMG framework signals a policy shift in rural employment, focusing on sustainable asset management and local participation, making it a current topic of discussion.

6. What reforms are needed to improve the effectiveness of MGNREGA and the implementation of V-B-G-RAMG?

Reforms could focus on ensuring timely wage payments, improving asset quality, enhancing convergence with other rural development programs, and strengthening monitoring and evaluation mechanisms. For V-B-G-RAMG, reforms should focus on building local capacity for asset management and ensuring community participation.

7. What is the historical background of MGNREGA?

The roots of MGNREGA can be traced back to pilot programs like the Employment Guarantee Scheme (EGS) in Maharashtra in the 1970s. This scheme aimed to provide guaranteed wage employment to rural households and influenced the national discourse on poverty alleviation and employment generation.

8. What are the recent developments related to MGNREGA?

Recent developments include challenges related to timely wage payments and budgetary allocations. There have been debates regarding the effectiveness of the scheme in creating durable assets and its impact on agricultural labor availability. The government is focusing on improving the convergence of MGNREGA with other rural development programs.

9. How does the shift towards V-B-G-RAMG impact common citizens in rural areas?

The shift towards V-B-G-RAMG aims to empower rural communities by promoting local participation in asset creation and management. This can lead to improved rural livelihoods, reduced dependence on wage employment, and increased community ownership of assets, ultimately enhancing the quality of life for common citizens.

10. What are some common misconceptions about MGNREGA?

One common misconception is that MGNREGA is solely a wage employment program. While wage employment is a key component, the scheme also aims to create durable assets and improve rural infrastructure. Another misconception is that it negatively impacts agricultural labor availability; however, it can supplement income and reduce distress migration.

Practice Questions (MCQs)

1. Consider the following statements regarding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): 1. It guarantees 150 days of wage employment in a financial year to rural households whose adult members volunteer to do unskilled manual work. 2. The Act mandates that at least one-third of the beneficiaries shall be women. 3. Social Audit of MGNREGA works is mandatory as per the Act. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.3 only
  • D.2 only
Show Answer

Answer: B

Statement 1 is INCORRECT: MGNREGA guarantees 100 days of wage employment, not 150 days, in a financial year to rural households. Statement 2 is CORRECT: The Act mandates that at least one-third of the beneficiaries shall be women to ensure gender equity. Statement 3 is CORRECT: Social Audit of MGNREGA works is mandatory as per the Act to ensure transparency and accountability in implementation. Thus, only statements 2 and 3 are correct.

2. With reference to the 'V-B-G-RAMG' framework, recently seen in the news, which of the following statements is most accurate?

  • A.It is a financial inclusion scheme for urban self-help groups.
  • B.It is a framework for village-based group revolving asset management guarantee in rural employment.
  • C.It is a program for skill development among tribal youth.
  • D.It is a micro-irrigation scheme for drought-prone areas.
Show Answer

Answer: B

The V-B-G-RAMG framework stands for Village-Based-Group-Revolving-Asset-Management-Guarantee. It represents a shift in rural job policy towards more sustainable and community-driven asset management, aiming to enhance the long-term impact of rural employment programs. Therefore, option B is the most accurate description.

3. Which of the following committees/commissions is/are associated with the conceptualization and evolution of employment guarantee schemes in India? 1. Hanumantha Rao Committee 2. Dantwala Committee 3. Lakdawala Committee Select the correct answer using the code given below:

  • A.1 only
  • B.1 and 2 only
  • C.2 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

The Hanumantha Rao Committee (1984) recommended a nationwide employment guarantee program. The Dantwala Committee is associated with unemployment estimates. The Lakdawala Committee is associated with poverty estimates. Therefore, only the Hanumantha Rao Committee is directly associated with the conceptualization of employment guarantee schemes.

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