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General Studies 2 >> Governance

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MINIMUM INCOME BILL

MINIMUM INCOME BILL

 

1. Context

Recently The Ashok Gehlot government tabled the Rajasthan Minimum Guaranteed Income Bill, 2023, which effectively seeks to cover the entire adult population of the state with guaranteed wages or pensions. 

2. Rajasthan Minimum Income Bill

  • Guaranteed Employment: All families in the state are to receive guaranteed employment of 125 days annually.
  • Minimum Pension: Aged, disabled, widows, and single women are entitled to a minimum pension of Rs 1,000 per month.
  • Pension Increase: Pension to be increased annually at a rate of 15 percent.
Three Categories in the Bill:
  • Right to Minimum Guaranteed Income.
  • Right to Guaranteed Employment.
  • Right to Guaranteed Social Security Pension.
  • Additional Expenditure: The anticipated additional expense of Rs 2,500 crore per year for the scheme, subject to potential increases over time.

3. Key Provisions of the Bill

Minimum Guaranteed Income:
  • 125 days of guaranteed employment for each adult citizen annually.
  • Urban areas covered by Indira Gandhi Shahri Rozgar Guarantee Yojana.
  • Rural areas covered by Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
  • State supplementing MGNREGA's 100 days with an additional 25 days in rural areas.
Minimum Pension:
  • Eligible categories (old age/specially abled/widow/single woman) entitled to a minimum pension of Rs 1,000 per month.
  • Pension increases by 5% in July and 10% in January each financial year, starting from 2024-2025.
Guaranteed Employment:
  • Minimum wages paid "weekly or in any case not later than a fortnight" after work in urban or rural employment schemes.
  • Program Officer (Block Development Officer in rural areas, Executive Officer of the local body in urban areas) responsible for implementation.
  • Work site to be within a 5-kilometer radius of the registered job card in both rural and urban areas.
  • If employment is not provided within 15 days of application, entitled to unemployment allowance on a weekly basis.
Guaranteed Social Security Pension:
  • Pension increases over the base rate by 5% in July and 10% in January each financial year, starting from 2024-2025 for eligible categories (old age/specially abled/widow/single woman).

4. Significance of the Bill

  • The true measure of any society can be found in how it treats its most vulnerable members. (Mahatma Gandhi)
  • It is the moral responsibility of every government to ensure that everyone gets justice.
  • Therefore, the Bill is part of a bouquet of schemes and measures undertaken by the Rajasthan government to provide relief from inflation with an eye on the polls later this year.

5. Social Activist's Perspective

  • MKSS shared a draft of the Bill with the state government.
  • The Bill is praised for being the first of its kind in the country and is considered a welcome step by activists.
  • The Bill is appreciated for including all essential elements necessary for its effectiveness.
  • The Bill distinguishes itself from cash transfer schemes in other states by legally guaranteeing minimum employment and pensions.
  • While a more detailed draft was submitted by the civil society network Soochna Evum Rozgaar Adhikar Abhiyan, parts that were skipped in the current version can potentially be included in the rules under the Act.
For Prelims: Minimum Income Bill, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), and Indira Gandhi Shahri Rozgar Guarantee Yojana.
For Mains: 1. Critically evaluate the provisions and potential impact of the Minimum Income Bill recently introduced in Rajasthan. Discuss how the bill aims to address poverty and socioeconomic disparities in the state through guaranteed employment, minimum pensions, and social security measures. (250 words).
 Source: The Indian Express

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