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3 Feb 2026·Source: The Hindu
4 min
EconomySocial IssuesPolity & GovernanceNEWS

Rural Job Scheme Allocation Criticized for Transition Clarity, Funding

Activists question clarity and funding for MGNREGS transition to VB-GRAM G.

Civil society groups have criticized the Union Budget's allocation for rural job schemes. They claim there is a lack of clarity on the transition from the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) framework. The promised 125 days of employment may not be financially viable with the provided outlay. The Budget earmarked ₹95,692.31 crore for VB-G RAM G and ₹30,000 crore for MGNREGS. Nikhil Dey of MKSS argues the ₹30,000 crore provision for MGNREGS is unclear and may be used to clear liabilities or wind down the program. The NREGA Sangarsh Morcha (NSM) also raised concerns about the lack of transparency on VB-G RAM G and the untenability of the 125-day guarantee at current funding levels.

Key Facts

1.

Budget allocates ₹95,692.31 crore for VB-G RAM G

2.

Budget allocates ₹30,000 crore for MGNREGS

3.

Activists question 125-day employment guarantee viability

UPSC Exam Angles

1.

GS Paper 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

2.

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

3.

Connects to syllabus topics like poverty alleviation, rural development, and social justice.

4.

Potential question types: Statement-based MCQs, analytical questions on the effectiveness of rural employment schemes.

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More Information

Background

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, guarantees 100 days of wage employment in a financial year to rural households whose adult members volunteer to do unskilled manual work. This landmark legislation aimed to address rural poverty and provide social security. The act is rooted in the constitutional directive of securing the right to work, although this is a Directive Principle of State Policy (DPSP) and not a fundamental right. Over the years, MGNREGA has faced scrutiny regarding its implementation, wage rates, and asset creation. Several committees and studies have assessed its impact and suggested improvements. The scheme operates on a demand-driven basis, meaning that employment is provided based on the demand from rural households. The Ministry of Rural Development oversees the implementation of MGNREGA in coordination with state governments. The legal framework for MGNREGA is primarily based on the MGNREGA Act, 2005. This act outlines the rights and entitlements of beneficiaries, the responsibilities of various levels of government, and the mechanisms for monitoring and evaluation. The act also provides for social audits to ensure transparency and accountability. The scheme is funded through a combination of central and state government resources.

Latest Developments

The Union Budget has allocated funds for both the existing MGNREGS and the new Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G). This transition has raised concerns about the clarity and financial viability of the new scheme. Civil society groups are questioning whether the allocated funds are sufficient to guarantee the promised 125 days of employment under VB-G RAM G. The debate also centers on the allocation of ₹30,000 crore for MGNREGS. There is uncertainty about whether this amount will be used to clear pending liabilities or to gradually wind down the program. The lack of transparency regarding the operational details of VB-G RAM G is further fueling these concerns. Stakeholders are seeking more information on how the new scheme will be implemented and how it will differ from MGNREGS. Looking ahead, the success of VB-G RAM G will depend on effective planning, resource allocation, and transparency. It is crucial to address the concerns raised by civil society groups and ensure that the new scheme effectively addresses rural unemployment and promotes sustainable livelihoods. The government's ability to provide clarity and demonstrate its commitment to rural employment will be key to building trust and ensuring the success of the new initiative.

Frequently Asked Questions

1. What are the key budget allocations related to rural job schemes that are important for the UPSC Prelims?

The Union Budget allocated ₹95,692.31 crore for Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) and ₹30,000 crore for MGNREGS. Activists are questioning the viability of the 125-day employment guarantee under VB-G RAM G given the current funding.

Exam Tip

Remember the allocation amounts for both schemes. Focus on the concerns raised about the 125-day guarantee.

2. What is the main difference between MGNREGS and the new VB-G RAM G, as understood from the current news?

The key difference, based on the news, is the transition and the promised number of employment days. MGNREGS guarantees 100 days of employment, while VB-G RAM G promises 125 days. The main concern is whether the allocated budget is sufficient to support the increased employment days under VB-G RAM G.

Exam Tip

Focus on the number of guaranteed employment days and the financial viability concerns.

3. Why is the allocation for MGNREGS being questioned by civil society groups?

Civil society groups, like MKSS and NREGA Sangarsh Morcha (NSM), are questioning the allocation because of a lack of clarity. They fear the ₹30,000 crore provision might be used to clear existing liabilities or wind down the program instead of funding new employment opportunities.

Exam Tip

Note the names of the organizations raising concerns.

4. What are the potential implications of the transition from MGNREGS to VB-G RAM G for rural employment?

If the transition is not managed well with adequate funding and transparency, it could negatively impact rural employment. The promised 125 days of employment might not be achievable, leading to dissatisfaction and potential distress among rural households dependent on such schemes.

Exam Tip

Consider both positive and negative impacts of the transition.

5. What is the historical background of MGNREGA?

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted in 2005. It guarantees 100 days of wage employment in a financial year to rural households whose adult members volunteer to do unskilled manual work. The act aimed to address rural poverty and provide social security.

Exam Tip

Remember the year of enactment and the guaranteed employment days under MGNREGA.

6. Who is Nikhil Dey and what is his opinion on the MGNREGS allocation?

Nikhil Dey of MKSS argues that the ₹30,000 crore provision for MGNREGS is unclear. He suspects it may be used to clear liabilities or wind down the program instead of funding new employment.

Exam Tip

Remember Nikhil Dey's name and his association with MKSS.

7. What are the key facts to remember about VB-G RAM G for the UPSC exam?

Key facts include the allocation of ₹95,692.31 crore in the Union Budget, the promise of 125 days of employment, and the concerns raised about its financial viability by civil society groups.

Exam Tip

Focus on the allocation amount, employment days, and associated concerns.

8. What reforms are needed to ensure the effective implementation of rural employment schemes like VB-G RAM G?

Reforms should focus on ensuring transparency in fund allocation and utilization, adequate funding to meet the promised employment days, and effective monitoring to prevent corruption and ensure that the benefits reach the intended beneficiaries.

Exam Tip

Think about transparency, accountability, and effective monitoring.

9. Why is the transition from MGNREGS to VB-G RAM G in the news recently?

The transition is in the news because of concerns raised by civil society groups about the clarity and financial viability of the new scheme, particularly regarding the allocation of funds and the ability to guarantee 125 days of employment.

Exam Tip

Focus on the concerns raised about funding and employment guarantee.

10. How does the current situation impact common citizens in rural areas?

If the concerns about funding and implementation are not addressed, common citizens in rural areas may face reduced employment opportunities and financial distress. The promised 125 days of employment under VB-G RAM G may not materialize, impacting their livelihoods.

Exam Tip

Consider the potential impact on livelihoods and financial security.

Practice Questions (MCQs)

1. Consider the following statements regarding the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA): 1. It guarantees 100 days of wage employment to every rural household in a financial year. 2. The scheme is demand-driven, ensuring employment based on demand from rural households. 3. The Ministry of Finance is responsible for overseeing the implementation of MGNREGA. 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: A

Statement 1 is CORRECT: MGNREGA guarantees 100 days of wage employment in a financial year to rural households. Statement 2 is CORRECT: The scheme is demand-driven. Statement 3 is INCORRECT: The Ministry of Rural Development, not the Ministry of Finance, oversees the implementation of MGNREGA.

2. Which of the following statements accurately reflects the concerns raised by civil society groups regarding the recent budget allocation for rural job schemes?

  • A.The allocation for MGNREGS is significantly higher than that for the new VB-G RAM G scheme, ensuring continuity of the existing program.
  • B.There is a lack of clarity on the transition from MGNREGS to the VB-G RAM G framework, and the allocated funds may not be sufficient to guarantee 125 days of employment under the new scheme.
  • C.Civil society groups have praised the increased transparency in the budget allocation for rural job schemes.
  • D.The budget ensures that the VB-G RAM G scheme will provide 200 days of employment, exceeding the original MGNREGS guarantee.
Show Answer

Answer: B

Civil society groups have criticized the lack of clarity on the transition from MGNREGS to VB-G RAM G and the potential inadequacy of funds to guarantee 125 days of employment. The budget earmarked ₹95,692.31 crore for VB-G RAM G and ₹30,000 crore for MGNREGS. The promised 125 days of employment may not be financially viable with the provided outlay.

3. Which of the following is NOT a key feature of the MGNREGA Act, 2005?

  • A.Guarantee of 100 days of wage employment to rural households.
  • B.Provision for social audits to ensure transparency and accountability.
  • C.Focus on asset creation in rural areas.
  • D.Providing unemployment allowance if work is not provided within 15 days of demand.
Show Answer

Answer: D

The MGNREGA Act, 2005 guarantees 100 days of wage employment, provides for social audits, and focuses on asset creation. Unemployment allowance is provided if work is not provided within 15 days of demand. This is a key feature, so D is the wrong answer.

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