The recently enacted Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act to provide for jobs in rural areas will be enforced from July 1, a new notification issued on Monday said.
The two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) will be repealed from the same date.
A media release issued by the ministry of rural development (MoRD) said every rural household shall be entitled to 125 days of wage employment in every financial year. Wages shall continue to be transferred into bank or post-office accounts of the workers through direct benefit transfer (DBT) within 15 days of completion of the work.
Social activists on Monday expressed concern over how the date for the implementation of the VB–G RAM G law was notified without clarifying state-wise allocations and wage rates.
The MGNREGA provides for up to 100 days of employment in a year. The MoRD bears the wage expenses while material costs are shared in a 75:25 ratio between the Centre and states. The share of the states in wage and material together remains below 10 per cent of total expenditure.
However, under VB–G RAM G, the states have to spend 40 per cent of total expenses. Several states, particularly those ruled by the Opposition parties, have opposed the enhanced funding share of the states.
Nikhil Dey, a social activist associated with Mazdoor Kissan Shakti Sangathan, said there was no clarity on how the government was going to fix normative allocations for states.
“The Union budget has allocated ₹95,000 crore for VB-G RAM G law in the current financial year. But it is unclear how it will be distributed and which state will get how much funding,” Dey said.
Under the MGNREGA, the government revises the wage rates for every state every year. The rates have not been revised for the current financial year. As a result, the workers are currently working at a lower wage rate, Dey said.
“The wage revision used to happen every year in March for the next financial year. This year, it was not done. The workers are being paid at last year’s rate under the MGNREGA. As the MGNREGA is still in force till the end of June, workers will get a lower wage rate,” Dey said.
He said there was no clarity on how the VB-G RAM G wage rates would be fixed and 125 days of employment could be ensured with the limited funds.
“The VB-G RAM G law says the states would have to bear the additional amount that they spend over what is fixed by the Centre. Without adequate funds provision from the central government, how can 125 days of employment be guaranteed?” Dey asked.
The MoRD release said the existing e-KYC verified MGNREGA job cards would remain under the VB–G RAM G until Gramin Rozgar Guarantee Cards are issued. Workers without job cards may continue to register at the gram panchayat level.