Rural Employment Scheme Revamp Sparks Political Row

Rural Employment Scheme
  • States Face Higher Funding Burden
  • Proposal Triggers Political Debate
  • Implementation Concerns Grow Nationwide

Article Today , New Delhi:

The Union government has proposed major changes to the Mahatma Gandhi National Rural Employment Guarantee Scheme, raising concerns among States and opposition parties. The proposal includes renaming the scheme and altering its funding structure. These moves have triggered a nationwide debate on the future of rural employment support.

Renaming and Structural Shift
According to the proposal, the scheme may be renamed as Viksit Bharat Guarantee for Rozgar aur Aajeevika Mission Grameen. However, opposition leaders questioned the removal of Mahatma Gandhi’s name from the programme. They argued that the change goes beyond symbolism and reflects a shift in policy intent.

Funding Pattern Revision
Meanwhile, the Centre has proposed revising the funding ratio from full central funding of wages to a 60:40 cost-sharing model between the Centre and the States. This would place a 40 per cent financial burden on States. Experts warned that fiscally stressed States may struggle to sustain implementation.

Concerns Over State Capacity
In addition, States have raised concerns over delayed fund releases in recent years. With an increased financial share, several States fear reduced work availability under the scheme. Analysts noted that this could weaken the legal guarantee of employment.

Impact on Agricultural Seasons
The proposal also allows States to halt work under the scheme for up to 60 days during peak agricultural seasons. The Centre stated that this measure aims to prevent wage inflation in agriculture. However, labour groups argued that it could limit income security for rural workers.

Rights and Compensation Issues
However, critics highlighted that the proposed changes shift responsibility for unemployment allowance and delay compensation to States. They said this departs from the original framework that ensured worker protections through central accountability.

Opposition and Expert Reactions
Therefore, opposition parties and labour organisations described the proposal as a dilution of statutory rights. They demanded wider consultation before any legislative move. The Centre has yet to announce a timeline for finalising the changes.

Uncertain Road Ahead
Finally, policy observers noted that the proposed overhaul could significantly alter the character of the rural employment scheme. The coming parliamentary discussions are expected to determine the future course of one of India’s largest social welfare programmes.

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