The Supreme Court called the repealed MGNREGA a 'salutary scheme' and urged review of minimum wage laws, amid civil rights groups' claims that its successor has seen a 50% drop in employment generation and increased state funding burdens.

The Supreme Court on Friday praised the repealed Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), describing it as a 'salutary scheme' that was neither a freebie nor exploitation of rural workers. The court also urged examination of minimum wage laws amid concerns over the new employment guarantee scheme.
Civil rights groups have alleged that MGNREGA's successor, the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) — or VB-G RAM G Act — has seen a 50% decline in employment generation, even though guaranteed work days per household increased from 100 to 125 annually.
The new law reportedly shifts from a demand-driven, rights-based framework to a centrally controlled model. It also increases the funding burden on states three-fold, with the cost-sharing ratio moving from 90:10 to 60:40 between the centre and states. The court's remarks were made while considering these claims.
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