Nikhil Dey, a founder member of the Mazdoor Kisan Shakti Sangathan, says that the government has “completely demolished the idea of a rural employment guarantee scheme.”Dey makes four very important criticisms of the way the scheme is funded and will operate.First, he points out its supply-driven and not, as MGNREGA used to be, demand-driven. So, when the amount set aside as expenditure is exhausted, employment will stop even if there is demand for further employment. That is the first critical change with MGNREGA, and it vitiates the MGNREGA guarantee.Second, Dey points out that the Centre will determine how much money each state is given and, if it chooses, it can give negligible amounts to states where the opposition is in power and it has poor relations with the state government.Third, Dey points out that the ratio of funding between the Centre and the States has altered from 90:10 to 60:40 which, by some estimates, could impose an increased additional burden of 30,000 crore on the States, which many, if not most, may not be able to meet.Fourth, Dey points out that the new law permits the Centre to decide where in the States the scheme will operate. It’s possible that large chunks of a State or several districts, where employment is needed, may be left out.In conclusion, Dey says it’s completely misleading and false to claim that the new law enhances the guarantee of a 100 days of employment a year to 125.