Syllabus: Inclusive growth and issues arising from it.
Context and Objective
- The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 received Presidential assent.
- It enhances statutory wage employment guarantee from 100 to 125 days annually.
- Focuses on rural livelihoods, asset creation, convergence, and resilience-building.
Addressing Key Criticisms
- Claims of dilution of employment guarantee are factually incorrect.
- The Act retains justiciable right to work while strengthening enforceability.
- Procedural barriers weakening unemployment allowance earlier have been removed.
- Time-bound grievance redress mechanisms have been reinforced.
Demand-Based Employment and Planning
- Employment demand continues to originate from workers, not authorities.
- Reform shifts from reactive distress response to advance participatory planning.
- Village-level planning ensures work availability when demanded.
- Planning operationalises demand, rather than suppressing it.
Decentralisation and Federal Structure
- Gram Panchayats remain primary planning and implementing authorities.
- Gram Sabhas retain approval powers over local plans.
- Introduction of Viksit Gram Panchayat Plans enables structured, participatory planning.
- Aggregation across levels ensures coordination, not centralised decision-making.
- Centralisation applies to coherence, while authority remains local.
Consultation and Cooperative Federalism
- Reform followed extensive consultations with States and stakeholders.
- Design reflects implementation lessons and State feedback.
- States empowered as development partners, not mere implementing agencies.
Fiscal Commitment and Equity
- Central allocation increased from ₹86,000 crore to nearly ₹95,000 crore.
- 60:40 Centre–State funding model follows established CSP norms.
- 90:10 ratio applies for northeastern, Himalayan States, and J&K.
- Rule-based State-wise normative allocations ensure equity and transparency.
- Flexibility allowed during natural disasters and extraordinary situations.
Correcting Structural Weaknesses
- Earlier framework suffered from episodic employment and weak enforceability.
- Persistent issues included duplication, ghost entries, and fragmented assets.
- Reform integrates livelihood support with durable infrastructure creation.
Conclusion
- The Act rejects the false binary between welfare and development.
- It preserves rights, expands entitlements, and modernises implementation.
- VB-G RAM G Act represents renewal through reform, not withdrawal of welfare.

