The Minimum Guaranteed Income Bill, passed by the Rajasthan state assembly last week, is a “historic” legislation in the true sense of the term. It showcases the state government’s commitment towards ensuring a rights-based approach to livelihood generation. The Bill essentially guarantees every adult person residing in urban areas of the state an employment for at least 125 days in a financial year. The Rajasthan government’s move is historic because no other state in India has an urban employment guarantee law. States like Odisha and Rajasthan itself had floated urban employment schemes in the past, but a law is entirely distinct from a scheme. The continuance of any scheme is by and large decided at the mercy of the state. A law, on the other hand, recognizes the entitlement of the targeted group. While non-implementation of schemes goes largely unchallenged, citizens enjoy legal recourse in the case of laws. The legislation also ensures 25 additional days of rural employment under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), over and above the provision of 100 days. Importantly, the third thing it ensures is a pension of Rs 1,000 per month for disabled persons, widows, and old. Again, it is for the first time in the history of India that pension will be provided to the defined target as a legal guarantee. Not only is it a major improvement over the doling out of tokenistic, meagre elderly pensions, but also guarantees an increase of 15 per cent each year in the amount, apart from indexing it with inflation. The bill has also attracted criticism from several quarters. However, the misguided labelling of the law as a ‘revadi’ holds little water, because it adopts an empowering approach through conferring the legal right to work to the citizens. Imaginative social welfare schemes cannot be equated with freebies. It must be recalled that the preamble of India mentions India to be a ‘socialist’ republic. Despite seven and a half decades of independence, poverty, unemployment, destitution etc. are rife in the country. The overtly capitalistic inclination of the governments lately has ensured that prosperity comes in India at the expense of increasing socio-economic inequalities. Under such a circumstance, the imaginative welfare approach of the Rajasthan government is a beacon of hope. Furthermore, the move is in line with Constitutional principles and provisions. Article 39(a) of the Indian Constitution provides that the citizens, men and women equally, have the right to an adequate means of livelihood. Article 43 of the Indian Constitution also says that the State shall endeavour to secure, by suitable legislation or economic organisation or in any other way, to all workers, agricultural, industrial or otherwise, work, a living wage, conditions of work ensuring a decent standard of life and full enjoyment of leisure and social and cultural opportunities. The Rajasthan government’s move is a progressive step towards fulfilment of these directive principles. The only possible lacunae in the new law could relate to its economic viability. Several quarters have criticized that the government’s move can take a deep toll on the functioning of the economy, limiting the scope of capital infrastructure in particular. However, it must be noted that over the past few years, Rajasthan has fared impressively well on crucial economic indicators — be it GSDP growth, capital expenditure, debt-to-GSDP ratio, per capita income etc. This resilient standing has provided the state government a headroom to go about introducing the much-needed welfare interventions. Secondly, one must come out of the misconception that the urban employment guarantee law and legalisation of pensions for elderly, disabled and widow will be a drag on the economy. Remuneration through productive employment and pensions will lead to higher private consumption — one of the four important engines of growth, like capital expenditure. Of course, it will be challenging for the state government to manage its finances in a balanced manner. But the quantum of possible rewards makes it worth taking up the challenge.