Mahatma Gandhi National Employment Guarantee Scheme

Summary of Key Facts and Policies Related to the Mahatma Gandhi National Employment Guarantee Scheme (MGNREGS)

1. Constitutional References and Legislative Action:

• The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005 established a legal framework guaranteeing wage employment.
• Bill No. 197 of 2025 has been passed to repeal the MGNREGA, citing the need to introduce a new scheme.
• Section 37(1) of the Bill states that the MGNREGA and all related rules and guidelines will be repealed, and a new scheme called the "Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin): VB—G RAM G Scheme" will replace it.

2. Key Features of the New Bill:

• Under Section 8(1), each state is required to create a scheme providing a guarantee of 125 days of wage employment per year to every rural household.
• The scheme will be state-specific, with costs shared by the central and state governments in a 60:40 ratio.
• Areas of implementation will be determined by the central government, potentially undermining state autonomy.

3. Economic Context and Impact:

• The original MGNREGS provided an unequivocal guarantee of 100 days of employment, which served as a vital safety net for around 12 crore households, especially benefiting women and the elderly.
• Current averages show households receive about 50 days of guaranteed employment instead of the promised 100 days.
• Financial allocations for MGNREGS have decreased significantly, from a budget estimate of ₹1,11,170 crore in 2020-21 to ₹86,000 crore in 2025-26.
• The number of households working under the scheme has declined from 7.55 crore in 2020-21 to 4.71 crore in 2024-25.
• Unpaid wages have accumulated to around ₹14,300 crore.

4. Judicial and Legislative Criticism:

• Critics argue that the repeal undermines guaranteed livelihood security fundamental to the original act.
• The Bill is viewed as reversing the spirit of MGNREGS by introducing conditions that could limit access and effectiveness.

5. Social Implications:

• The repeal is seen as detrimental to the livelihoods of the rural poor, particularly affecting vulnerable groups.
• The new scheme's lengthy and complex name may alienate non-Hindi speakers and fail to communicate its purpose effectively.

Conclusion:

The proposed legislative changes to MGNREGS through Bill No. 197 of 2025 potentially retract critical employment guarantees established under the original act. The modifications appear to favor central control and may compromise the financial and operational viability of rural employment schemes, which have historically been crucial for India's poorer demographics.