The introduction of the Viksit Bharat Guarantee for Rozgar and Aajeevika Mission (Gramin), 2025—popularly called the VBG–Jeevika Bill—marks not a rupture but a historic reset in India’s rural policy architecture. Much like 2005 reimagined employment as a right, 2025 reimagines it as a pathway. The Bill does not merely replace MGNREGA; it redefines the purpose of public employment in a growing economy. Anchored in the Viksit Bharat 2047 vision, it seeks to move rural India from episodic distress management to structured livelihood creation. By guaranteeing up to 125 days of work, strengthening durable asset creation, and integrating employment with Jeevika-led livelihood missions, the State signals a philosophical shift: rural labour is no longer treated only as a buffer against poverty, but as an engine of productivity, resilience, and long-term growth.

One of the most consequential yet underappreciated aspects of the new framework is its sharper emphasis on productive rural capital. MGNREGA, despite its undeniable social impact, often faced criticism for fragmented works with limited economic returns. VBG–Jeevika consciously addresses this gap by embedding employment within agriculture, water management, climate adaptation, rural infrastructure, and self-employment ecosystems. At the field level, this transforms the meaning of a workday. Labour invested today builds irrigation tomorrow, improves soil health, strengthens village connectivity, or supports income-generating assets. The poor are no longer compensated merely for time spent; they participate directly in constructing the economic foundations of their own communities. This reframing—from relief work to growth-enabling work—may prove to be the Bill’s most enduring contribution.

The revised funding pattern of 60:40 between the Centre and States, while politically contentious, introduces a layer of fiscal realism long missing from rural employment design. Under the earlier regime, excessive centralisation often led to payment delays, mounting arrears, and diffused accountability. By mandating state co-investment, VBG–Jeevika pushes ownership closer to the ground. States now have stronger incentives to plan viable works, align employment with local strengths, and monitor outcomes more rigorously. At the field level, this can translate into fewer token projects and more region-specific interventions—whether in agriculture-dominated belts, fisheries clusters, craft economies, or rural enterprises. Where governance capacity is strong, the multiplier effects could exceed what the earlier, more uniform model delivered.

Equally significant is the Bill’s attempt to manage rural labour markets rather than inadvertently distort them. MGNREGA, in certain regions, created seasonal labour shortages and wage pressures disconnected from productivity, hurting small and marginal farmers. The provision allowing calibrated pauses during peak agricultural seasons reflects a macroeconomic correction rather than a withdrawal. When employment support is better synchronised with cropping cycles, farm operations stabilise, cost pressures ease, and output improves. At the aggregate level, this has implications far beyond villages—food supply becomes more predictable, inflationary spikes moderate, and distress migration driven by misaligned incentives declines. A smoother rural labour market ultimately benefits labourers and farmers alike.

Technology and governance reforms further distinguish VBG–Jeevika from its predecessor. The emphasis on real-time monitoring, digital workflows, and outcome tracking aims to address chronic issues of leakages, delayed payments, and weak accountability. Importantly, technology is positioned as an enabler, not an end. Faster wage credits, clearer audits, and transparent dashboards can rebuild trust at the village level, reducing disputes and uncertainty. When integrated with Jeevika Mission structures, the scheme also nudges workers beyond perpetual manual labour towards skills, self-help groups, and sustainable livelihoods. Employment becomes transitional rather than terminal—a bridge to economic independence rather than a permanent destination.

Ultimately, VBG–Jeevika represents a coherent economic worldview rather than an incremental tweak. It reflects the belief that while the State must guarantee protection against distress, it cannot anchor a growing economy indefinitely around emergency employment. Democratically and institutionally, the government is within its mandate to replace a framework it ideologically disagrees with, especially after over a decade of continuity. The real test lies in implementation—sensitivity to local realities, responsiveness to distress, and administrative discipline. If executed with balance, VBG–Jeevika can transform rural India from a recipient of guarantees into a generator of growth, converting public employment from a last resort into a launchpad for prosperity.
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