Rural jobs guarantee revamp: More days of work, greater burden for states?

The bill was tabled by Shivraj Singh Chouhan, minister for rural development and agriculture & farmers’ welfare.Mint reported on 15 December that the proposed legislation seeks to provide a statutory guarantee of 125 days of wage employment, up from the current 100 days, in every financial year to each rural household whose adult members are willing to undertake unskilled manual work.The scheme will operate as a centrally-sponsored scheme, with the Union government bearing 90% of the financial burden for north-eastern and Himalayan states and Union territories, and 60% for other states. Respective states will need to stump up the rest.The expenditure under the scheme will depend on the number of persons reporting for work, the applicable wage rate, and the material and administrative components of the work.

If the legislation is implemented across the country, the total estimated annual requirement of funds for wages, material and administrative components is ₹1.51 trillion, including the state share. Of this, the estimated central share is ₹95,692.30 crore.“All these estimates are based on full demand from across the country for 125 days of work starting from next financial year,” Chouhan said.Opposition leaders and labour rights activists have criticized the proposed legislation, arguing that the changes dilute the core demand-driven nature of the employment guarantee scheme and shift greater financial responsibility to states.“The introduction of the VB G RAM G Bill in Parliament is a sad day for labour rights and the basic rights of vulnerable rural Indians.