Analysis | ‘Ram Ji’ hits the rights of the poor

– Prof. M.S.Sriram
IIM Bangalore

The Parliament has passed the Vikasita Bharat Guarantee for Employment and Livelihood Mission (GRAM) Bill, repealing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), and the President has signed it into law. This move is not merely about removing Mahatma Gandhi’s name from the scheme; it strikes at the very soul of the programme. The new bill therefore requires close scrutiny. Those concerned about the autonomy of states must recognise the steady centralisation that has taken place over the last decade.

In the journey from “MNREGA” to “VB-G Ram Ji”, the government has stripped the poor of their self-respect. MGNREGA, which guaranteed the right to work for anyone willing to work, earned global recognition as one of the most impactful pro-poor programmes. Introduced initially in select districts and later expanded nationwide, the scheme was transformed from a welfare initiative into a legal right. It reshaped the discourse on poverty, employment security, and social security. MGNREGA increased minimum wage levels and, more importantly, ensured that people could earn with dignity rather than fall into conditions resembling servitude.

In an era where direct cash transfers are portrayed as government generosity and recipients are labelled “beneficiaries”, the abolition of a programme that allowed people to demand work as a right represents a serious blow to the dignity of the poor. The law that empowered people to refuse exploitative wages and seek work locally as a matter of right has been repealed.

The new VB-G Ram Ji Bill was passed without being referred to a standing committee, without detailed examination, and without any meaningful amendments after theatrical debates in both Houses of Parliament.

The bill is riddled with complications. Although it promises at least 125 days of work, it introduces numerous conditions. Employment will be provided only in districts and villages identified by the central government, limited to pre-approved nation-building projects, capped by overall budgetary allocations, and subject to exclusions during agricultural seasons. In effect, employment is no longer a guaranteed right, nor is the programme universal.

While the bill appears to increase the number of workdays, it provides no clear framework for implementation. Further, the Centre’s contribution has been reduced from 90% to 60%, transferring a greater financial burden to states. This effectively allows the central government to dictate state budgets. Such an approach cannot be described as progressive.

Over the past decade, India has witnessed an aggressive centralisation of power—financial resources are centralised, expenditure is decentralised, grants are disbursed arbitrarily, and payments are delayed.

Although India adopted a federal structure, historical circumstances led to a stronger Centre. Yet, decentralisation was consciously preserved through constitutional division of powers and institutions such as the Planning Commission and the National Development Council.

The introduction of GST severely weakened federalism. While it may be defended as a reform to facilitate commerce, it resulted in states surrendering financial autonomy to the Centre. Under the slogan “One Nation, One Tax”, local governance has been marginalised. States can no longer adjust tax rates independently and must rely on centrally determined transfers, while borrowing limits are tightly controlled. These restrictions do not apply equally to the Centre.

Centralisation has expanded beyond taxation. Agriculture, cooperation, labour, education, and other state subjects have seen increasing interference. Even a Ministry of Cooperation has been established under the Union Home Minister. Everything now bears the prefix “Prime Minister”, reinforcing the trend toward excessive central authority.

The VB-G Ram Ji Bill is another step in this direction. Changing the scheme’s name distracts from the reality that resources are allocated selectively and at the discretion of the Centre, pushing the country toward monotonous “one nation” centralisation.

Decentralisation is essential for states to respond to local needs. A Centre that hoards taxes, data, and decision-making power while denying information to states undermines democratic governance. Everything becomes propaganda.

The VB-G Ram Ji Bill threatens to demolish, in one stroke, the social security framework painstakingly built over decades. At the very least, it must be opposed.

Rather than openly amending the Constitution, the government is altering individual laws and names, revealing a troubling drift toward authoritarianism. Guaranteed employment has been replaced with pre-election cash deposits meant to secure votes. States must reclaim fiscal autonomy and confront the core issues posed by GST and centralisation.

VB-G Ram Ji is a wake-up call. It is better to wake up now.

The article was originally written in Kannada and has been translated into English.

Source: Prajavani