CPI flays Centre over weakening of rural job scheme, plans padayatra in Rayalaseema
Ramakrishna says funding cut from 90% to 60% burdens States; G. Eswaraiah flags neglect of Rayalaseema irrigation projects and seeks ₹32,000 crore for Polavaram
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Context
The Communist Party of India (CPI) has criticized the central government for weakening the rural employment guarantee framework. The article highlights the passage of the Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, which replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. The CPI alleges these changes, particularly a shift in the funding pattern, undermine the livelihood security of rural workers and is organizing protests in Andhra Pradesh's Rayalaseema region. The protests also aim to draw attention to regional imbalances in development, citing delays in local irrigation projects like the Veligonda project.
UPSC Perspectives
Polity & Governance
The transition from to the Viksit Bharat — Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G Act) marks a significant shift in rural employment policy, moving from a rights-based, demand-driven framework to one focused on creating a 'rural infrastructure stack'. The original MGNREGA was celebrated as a landmark for its legal guarantee of employment, making the state accountable for providing work or an unemployment allowance. The CPI's criticism that the program is being reduced from a 'legal right' to a 'mere scheme' reflects concerns that the new Act's structure could dilute this enforceability. The new Act changes the funding pattern to a 60:40 split between the Centre and states for all costs, unlike the previous model where the Centre bore 100% of unskilled wage costs. This raises questions about cooperative and fiscal federalism, as it increases the financial burden on states and may impact uniform implementation. The new law also introduces a provision allowing states to pause work for up to 60 days during peak agricultural seasons, which could affect the guarantee of continuous employment. From a UPSC perspective, this is a prime example of the evolution of social welfare legislation, the balance between central control and state autonomy, and the ongoing debate between a rights-based versus a developmental approach to poverty alleviation.
Economic
The economic implications of replacing with the VB-G RAM G Act are substantial, particularly concerning rural livelihoods and public finance. The CPI's primary economic critique is the alleged change in the funding ratio from a 90:10 to a 60:40 Centre-State split. However, the original MGNREGA funding was more complex: the Centre paid 100% of unskilled wage costs and 75% of material costs. The new Act standardizes the ratio at 60:40 for most states (90:10 for Himalayan and North-Eastern states) across all components—wages, materials, and administrative costs. This shift represents a significant increase in the financial liability for state governments, which could strain their budgets and potentially lead to lower outlays or poor implementation, as feared by the CPI. While the new Act increases the guaranteed workdays from 100 to 125, it also introduces a 'normative allocation' determined by the Centre, with states bearing any expenditure beyond this cap. This could transform the scheme from being purely demand-driven to being capped by budget allocations, affecting its role as a crucial economic safety net, especially during economic distress.
Geographical & Regional Development
The article highlights the issue of regional imbalance in development, a critical geographical and economic theme. The CPI's protest specifically links the weakening of a national scheme to the neglect of a particular region, Rayalaseema in Andhra Pradesh. This region is historically drought-prone, and the party criticizes the state government's focus on capital-centric projects like Amaravati while neglecting long-pending irrigation projects such as the . The Veligonda project is designed to irrigate lakhs of acres and provide drinking water to fluoride-affected areas, directly addressing the region's geographical disadvantages. The article also mentions the , a national project on the Godavari River, indicating the complex interplay of state and national priorities in water resource management. For UPSC aspirants, this illustrates the tangible consequences of policy decisions on regional development disparities. It connects the macro-level policy changes (like MGNREGA reform) to micro-level impacts and underscores the importance of equitable resource distribution and completing critical infrastructure to mitigate regional backwardness and prevent potential social unrest.