Experts worry that new employment guarantee scheme will push poor into more trouble

VIJAYAWADA: The repeal of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and its replacement with the VB-G RAM G Act marks a fundamental shift in India’s rural employment framework, with far-reaching implications particularly for Andhra Pradesh. Experts are of the view that rather than redesigning the programme, the new law alters its core character, moving employment from a legally enforceable, demand-driven right to an administratively managed provision governed by budgets, notifications, technology and calendar-based restrictions. In Andhra Pradesh, MGNREGA has long functioned as a critical safety net for rural households, particularly Scheduled Castes, Scheduled Tribes and women workers. The transition to VB-G RAM G, analysts warn, risks weakening that security at a time when rural livelihoods remain vulnerable to climatic and economic shocks. The Centre has highlighted an increase in the annual employment ceiling from 100 to 125 days as a key improvement. However, experience under MGNREGA suggests that a higher ceiling does not automatically translate into more work. Andhra Pradesh averaged only 51.6 days of employment during 2024-25, and just 11 per cent completed the full 100 days, largely due to fiscal and administrative rationing rather than lack of demand. With VB-G RAM G removing the statutory right to demand work while retaining only a notional ceiling, employment security could be further diluted. Libtech senior social scientist Buddha Chakradhar said the change represents a structural break rather than a policy upgrade. “MGNREGA at least provided workers with a legal claim, even if the State often failed to fully honour it. Under VB-G RAM G, discretion replaces entitlement, which is a serious setback for vulnerable workers in Andhra Pradesh,” he observed. Another major concern is coverage. While MGNREGA applied uniformly across rural AP, VB-G RAM G restricts employment to areas notified by the Central govt, enabling phased or selective implementation. Despite this, Gram Sabhas are reportedly being convened across the State without clarity on which areas will ultimately be covered, raising fears of exclusion, particularly for dispersed adivasi communities. The fiscal implications for the State are also significant. VB-G RAM G introduces a 60:40 Centre–State cost-sharing ratio without a statutory guarantee of full Central funding. With Andhra Pradesh already facing tight fiscal conditions, estimates suggest that to maintain FY 2024–25 employment levels, the State’s wage burden could rise from about ₹517 crore under MGNREGA to nearly ₹3,470 crore under the new framework, creating strong incentives to ration work. Technology-linked conditions add another layer of risk. AP’s own experience under MGNREGA saw around 78 lakh worker deletions linked to Aadhaar-based payment system changes and another 16 lakh deletions during a single month of intensive e-KYC. Under VB-G RAM G, such technological failures can legally result in denial of work or wages. Seasonal restrictions further complicate matters. Unlike MGNREGA, which allowed work even during agricultural seasons, VB-G RAM G permits restrictions of up to 60 days during notified peak periods. In a State with diverse and overlapping agricultural calendars, this could exclude workers precisely when they need income support, said Chakradhar. There are growing calls for the Andhra Pradesh govt to review the Act’s implications, initiate consultations with civil society and workers’ groups, and place a formal representation before the Union govt seeking reconsideration of the new framework. Average MGNREGA work in FY 2024–25: 51.6 days per household Households completing 100 days: 11 per cent Estimated State wage burden under VB-G RAM G: ~₹3,470 crore Worker deletions linked to technology changes: ~94 lakh Proposed Centre–State cost sharing under VB-G RAM G: 60:40