Renowned social economist and one of the architects of MGNREGA, Jean Drèze, has expressed serious reservations about the proposed VB-G RAM G scheme, warning that it weakens workers’ rights and effectively does away with the employment guarantee ensured under MGNREGA.
Speaking to the media persons in Ranchi, Drèze said the move is far more than a change in nomenclature. According to him, the new scheme explicitly repeals the Mahatma Gandhi Rural Employment Guarantee Act along with all its rules and guidelines, replacing a rights-based law with a discretionary programme that offers no assured employment.
Drèze pointed out that under the proposed framework, decision-making powers will rest entirely with the Union government. He said the Centre has absolved itself of responsibility while shifting financial liability to the states.
“There is no binding obligation on the Centre, whereas states are expected to bear an increased burden,” he added.
Highlighting key concerns, Drèze said the employment guarantee is being diluted through multiple provisions. One such clause allows the scheme to be implemented only in areas and during periods notified by the central government, effectively removing the guarantee of work and leaving employment at the government’s discretion.
He also criticised the revised funding pattern. Under MGNREGA, the Centre contributed nearly 90 per cent of the funds, ensuring smoother wage payments. The new scheme proposes a 60:40 cost-sharing ratio between the Centre and states, significantly increasing pressure on state finances. Beyond the allocated amount, states may have to bear the entire cost.
Another provision allows states to declare up to 60 days as mandatory discontinuation periods during which no employment will be provided. Drèze also objected to the requirement that all works be executed only in convergence with centrally notified schemes, limiting the autonomy of states and local bodies.
He further expressed concern over the scheme’s heavy reliance on technology, including digital systems, biometrics and artificial intelligence. Drawing from past experience, Drèze said such measures have often resulted in exclusion and denial of wages under MGNREGA.
According to Drèze, the proposed scheme offers no clear guarantees— neither of employment, nor of funding, nor of implementation. He dismissed claims of providing 125 days of work as misleading.
Meanwhile, Jharkhand MGNREGA Watch has announced a ‘VB-GRAMG Hatao’ rally in Ranchi on February 2, coinciding with MGNREGA Day. Organisers said around 5,000 daily wage workers are expected to participate in the protest.
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