Empower Your Future: Rural Jobs Guarantee 2.0 Provides Hope with More Days and Shared Burden Across States!
The Indian government is set to overhaul the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), the flagship rural employment scheme in place for nearly two decades. The proposed legislation, known as the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, aims to enhance employment opportunities from 100 days to 125 days annually while shifting the financial burden to state governments and imposing a freeze on employment during peak agricultural seasons.
As part of this transition, the scheme’s funding structure will change from a central sector model to a centrally sponsored scheme, reflecting the inherently local nature of rural employment. Under the new arrangement, the cost-sharing ratio between the Centre and states will be adjusted to 60:40, with a more favorable 90:10 ratio for northeastern and Himalayan states as well as select Union territories. Previously, states were responsible for covering 25% of material costs and 50% of administrative expenditures.
The increase in guaranteed workdays is anticipated to bolster rural household income, offering greater financial stability amid economic uncertainty and rising living costs. “The increase to 125 guaranteed days is a welcome development,” stated A.K. Verma, director at the Centre for the Study of Society and Politics. However, he expressed concern that the altered funding structure may strain cash-strapped state governments, which must now shoulder additional responsibilities.
In addition to the employment guarantee, the bill mandates that states operationalize defined schemes within six months of its passage. If eligible applicants do not receive employment within this timeframe, state governments will be obliged to deliver unemployment allowances as stipulated.
The bill also proposes significant changes in the implementation of the scheme. Advisory councils at both central and state levels will be established to oversee monitoring and effective execution. Furthermore, employment guarantee work will be paused during peak agricultural seasons, specifically for a total of 60 days each year, to prioritize farm labor availability. States will notify specific periods based on local agricultural activity patterns, enhancing flexibility and regional responsiveness.
With a focus on building rural infrastructure, the revamped framework prioritizes four key areas: water security, core rural infrastructure, livelihood-linked assets, and climate resilience. This strategic emphasis is designed to align public works with the broader Viksit Bharat 2047 vision aimed at sustainable rural development.
The government has announced that it will maintain the MGNREGA budget allocation at ₹86,000 crore for the 2025 financial year, a figure unchanged from the previous year. This follows fluctuations in spending under the scheme, influenced significantly by the COVID-19 pandemic, which escalated allocations above ₹100,000 crore in FY21.
Opposition parties have criticized the proposed renaming of MGNREGA, claiming it signifies an attempt to erase Mahatma Gandhi’s legacy from rural India. K.C. Venugopal, a member of the Indian National Congress, condemned the changes as superficial, arguing that they mask deeper issues such as persistent underfunding and mounting wage demands from workers.
This legislative overhaul signifies a pivotal moment for rural employment in India, aiming to adapt to changing needs while amidst concerns regarding funding and oversight. The success of the VB–G RAM G Bill will hinge on balanced financial responsibility and effective on-the-ground implementation.
Original Source: https://www.livemint.com/news/centre-proposes-renaming-mgnrega-to-vb-g-ram-g-plans-overhaul-of-funding-pattern-11765812795137.html
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Publish Date: 2025-12-15 23:13:00
