• UGI USER
  • Jul 27, 2023
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Rajasthan Minimum Guaranteed Income Bill, 2023

GS Paper – 2, Government Policies & Intervention

Current Context:

Last week, the Rajasthan state Assembly passed “The Minimum Guaranteed Income Bill”. Those who supported this Bill have called it “revolutionary” and “historic” while its opponents have accused the government of “misleading” people and “fooling” them on the eve of Assembly elections.

Further, since this Bill comes close on heels of other schemes and initiative such as the Chiranjeevi Yojana, which provides free treatment up to Rs 25 lakh, or the provisioning of accident insurance up to Rs 10 lakh or 100 units of free electricity etc., it has also stoked the old debate about governments providing “revdis” (freebies) before an elections versus governments expanding the rights of citizens.

The Bill seeks to help citizens cope with inflation and improve their financial stability. The Bill has three broad categories:
  • Right to minimum guaranteed income,
  • right to guaranteed employment,
  • and right to guaranteed social security pension.

What is the Rajasthan Minimum Guaranteed Income Bill, 2023?

Key Components of the Bill:
  • Right to Minimum Guaranteed Income:
1.The Bill guarantees a minimum income for every adult citizen for 125 days a year.
2.Each adult citizen will receive minimum income through the Indira Gandhi Shahri Rozgar Guarantee Yojana in urban areas and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in rural areas.
3.The state will add 25 days of employment to MGNREGA’s 100 days for rural areas.
  • Right to Guaranteed Employment:
1.The government will pay minimum wages weekly or fortnightly after the completion of work in urban and rural employment schemes.
2.A designated officer will ensure job sites are within five kilometers of the registered job card address.
3.If employment is not provided within 15 days of application, the applicant will receive a weekly unemployment allowance “and in any case not later than a fortnight.”
  • Right to Guaranteed Social Security Pension:
1.The Bill ensures that people falling under categories like old age, specially abled, widows, and single women receive a pension.
2.The pension will see an annual increase of 15% in two installments, starting from the financial year 2024-2025.
  • Distinguishing from Cash Transfer Schemes:
1.The Rajasthan Minimum Guaranteed Income Bill is unique as it legally guarantees both minimum income support and guaranteed employment and pensions, setting it apart from regular cash transfer schemes. It reflects Mahatma Gandhi’s vision of comprehensive welfare measures.
2.The Bill covers all families in the state, offering employment and pension support to various vulnerable groups. Cash transfer schemes may have limited coverage.
3.The Bill includes annual increment in pensions, ensuring they keep pace with inflation. Cash transfer schemes may not have such provisions.
4.The Bill takes a comprehensive approach towards social security, aiming to benefit vulnerable sections of society.
Criticism against the Bill:
1.While the Bill has received praise for its efforts to address economic disparities, some critics argue that the additional expenditure of Rs 2,500 crore per year may strain the state’s finances.
2.They express concerns about the long-term sustainability of the scheme and the potential burden it may place on taxpayers.