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News Topical, Digital Desk : The Ramji Bill has been passed by Parliament. Opposition MPs vehemently opposed it. They were upset over the bill's title. In fact, the bill replaces Mahatma Gandhi's name with Lord Ram's. The opposition also alleged that the bill eliminates employment guarantees for rural poor.
The opposition also opposed a changed funding structure that would require most states to pay 40 percent of wages under a mandatory social welfare scheme. The opposition argued that this condition weakens the scheme in most states, as most lack the financial resources to cover the estimated ₹560 crore wage bill.
The new bill will replace MNREGA
Congress MP P. Chidambaram said the bill attacks the very guarantees it is supposed to provide. He said, "It destroys livelihoods... it destroys security. Why do you call it a 'guarantee' bill? There are no guarantees in it. It does not guarantee livelihoods for the rural poor. There is no security in it."
The new bill, which will become law after President Draupadi Murmu signs it, will replace the Mahatma Gandhi National Rural Employment Guarantee Scheme implemented by the Congress-led UPA government.
What arguments did the government give in favour of the bill?
The government defended its new scheme, emphasizing the need to update a 20-year-old plan, which it argued was dysfunctional and rife with corruption. It also pointed to an increase in the minimum number of days of work, from 100 days under MNREGA to 125 days under GRAMG.
Agriculture Minister Shivraj Chauhan, who introduced the bill in the Lok Sabha on the name change controversy, said that Congress had added only Gandhi's name in the bill in 2009.
What is the bill, Mr Ram?
The Vikas Bharat-Employment and Livelihood Mission (Gramin), or VB-G RAM G Act, is also known as G RAM G. This bill would replace MNREGA and legally guarantee employment to every rural household, including at least 125 days of work.
These jobs will be created and awarded by the respective states and union territories, each of which will now share the salary burden with the central government in a 40:60 ratio. And if a job isn't found within 15 days of applying, an allowance will be provided, the full cost of which will be borne by the government. Additionally, a 60-day "no work" window has also been included in the scheme.
What else is in the new law?
The key points of the new law (at least the ones most discussed by MPs) are guaranteed working days, the funding structure, and increased central government control over fund allocation, which the government has described as “standard-based” rather than “demand-based,” meaning the central government will decide how much money each state will receive each year based on “objective parameters.”
Guaranteed work days: G RAM G guarantees a maximum of 125 days of work compared to 100 days under MNREGA but subject to certain conditions, including the declaration of the area as 'rural area' by the central government.
This means that the employment guarantee under GRAMG will not apply to areas not listed as "rural" by the central government. This is a borrowing from MNREGA. However, employment was originally provided in all rural districts, making it a pan-India scheme.
Funding logic: Under MNREGA, the central government paid approximately 90 percent of all expenses, including wages and raw materials. This changes under GRAMG, with states contributing 40 percent of that amount, although hilly states and those in the Northeast will only contribute 10 percent. Union Territories will continue to receive 100 percent funding.
Pros and cons of the bill
The government argued that the change in the financing structure would encourage each state to take financial responsibility for the scheme in its own areas. However, the opposition argued that this would further strain already weak state-level finances, effectively reducing the scope of the scheme by limiting the amount of work available.
The government has stressed that this will not impose "unnecessary financial burden" and the funding structure has been designed to suit the financial capabilities of each state.
The funding structure is a point of contention because it limits the amount of work each state can receive under the program, based on the center's "standard allocation." This also means that if the center wishes, it can "withhold funds where serious irregularities are found and direct corrective or remedial measures to be taken to address the deficiencies."
Who will award the work: Nothing will change at the grassroots level. Work will continue to be awarded at the grassroots level by the Panchayat and/or Program Officer. However, what will change is that under GRAMG, the central government will set standards, including, for example, regulating materials and design for construction work and limiting the nature of work approved for payment through the bill's designated finance.
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