Against the widespread protest and sloganeering, MGNERGA is past, and G RAM G Bill turned Act has replaced it. JharkhandStateNews.com presents the Modi government’s explanation for why this reform was the need of the hour.

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Key Takeaways

• The Viksit Bharat - G RAM G Bill, 2025 replaces MGNREGA with a new statutory framework aligned with Viksit Bharat 2047.

• The employment guarantee is enhanced to 125 days per rural household, strengthening income security

• Links wage employment with durable rural infrastructure across 4 priority areas.

• Strengthens decentralised planning through Viksit Gram Panchayat Plans and nationally integrated through the Viksit Bharat National Rural

Infrastructure Stack.

• The shift to normative funding and a centrally sponsored structure improves predictability, accountability and Centre -State partnership.

Introduction

Rural employment has been a cornerstone of India’s social protection framework for nearlytwo decades. Since its enactment in 2005 , the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA ) played a key role in providing wage employment, stabilising rural incomes and creating basic infrastructure. Over time,however, the structure and objectives of rural India have evolved significantly. Rising incomes, expanded connectivity, widespread digital penetrati on and diversified livelihoods have altered the nature of rural employment needs.

Against this backdrop, the Government has proposed the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 , also referred to as Viksit Bharat - G RAM G Bill , 2025 . 

The Bill represents a comprehensive statutory overhaul of MG NREGA ,aligning rural employment with the long -term vision of Viksit Bharat 2047 , while strengthening accountability, infrastructure outcomes and income security.

Background of Rural Employment and Development Policy in India Since Independence, rural development policies in India have focused on reducing poverty,improving agricultural productivity , and creating employment for surplus and underemployed rural labour. Wage employment programmes have gradually evolved as key instruments for supporting rural livelihoods while also strengthening basic infrastructure,with approaches adapting to changing socio -economic conditions over time.

India’s wage employment initiatives progressed through multiple phases, beginning with early programmes such as the Rural Manpower Programme (1960s) and the Crash Scheme for Rural Employment (1971).

These were followed by more structured efforts in the 1980s and 1990s , including the National Rural Employment Programme, Rural Landless Employment Guarantee Programme , later merged into Jawahar Rozgar Yojana(1993 ), which consolidated into Sampoorna Grameen Rozgar Yojana in 1999 , aimed at improving coverage and coordination. Complementary schemes such as the Employment Assurance Scheme and the Food for Work Programme addressed seasonal unemployment and food security. 

A major shift came with the Maharashtra Employment Guarantee Act of 1977 , which introduced the concept of a statutory right to work. These experiences culminated in the enactment of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2005 , providing a nationwide legal framework for rural employment generation.

MGNREGA Evolution and the Limits of Incremental Reform

The Mahatma Gandhi National Rural Employment Guarantee Act flagship programme aimed at enhancing livelihood security by providing at least (MGNREGA) was a

100 days

of guaranteed wage employment each year to rural households willing to undertake

unskilled manual work. Over the years, a range of administrative and technological reforms

strengthened its implementation, leading to notable improvements in participation,

transparency , and digital governance. Women’s participation rose steadily from 48 per cent

to 5 8.15 per cent between FY 2013 -14 and FY 2025 -26, Aadhaar seeding expanded

sharply, the Aadhaar -Based Payment System was widely adopted , and electronic wage

payme nts became nearly universal. Monitoring of works also improved, with a large

expansion in geo -tagged assets and a growing share of individual assets created at the

household level.

The experience under MGNREGA also highlighted the critical role played by field -level

staff, who ensured continuity and scale of implementation despite working with limited

administrative resources and staffing. However, alongside these gains, deeper structural

issues persisted. Monitoring across several states revealed gaps such as work on the ground, expenditure not matching physical progress, use of machines in intensive works , and frequent bypassing of digital attendance systems. 

Over the years, a range of administrative and technological reforms strengthened its implementation, leading to notable improvements in participation,transparency , and digital governance. Wide misappropriation accumulated , and only a small proportion of households were able to complete the full one hundred days of employment in the post pandemic period. 

Thesetrends indicated that while delivery systems improved, the overall architecture of MGNREGA had reached its limits.The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin Bill responds to this experience through a comprehensive legislative reset. It strengthens the implementation framework by increasing the administrative expenditure ceiling from 6 percent to 9 per cent , providing greater support for staffing, remuneration, training , and technical capacity. 

This shift reflects a practical and people -centred approach to programme management, moving towards a more professional and adequately supported system. Stronger administrative capacity is expected to improve planning and execution,enhance service delivery , and reinforce accountability, ensuring that the objectives of thenew framework are achieved consistently at the village level.

Rationale for a New Statutory Framework

The need for reform is also rooted in broader socio -economic changes. MGNREGA was built in 2005, but rural India has transformed. Poverty levels declined from 27.1 per cent in 2011 -12 to 5.3 per cent in 2022 -23, supported by rising consumption, improved financial access , and expanded welfare coverage. With rural livelihoods becoming more diversified and digitally integrated, the open -ended and demand -driven design of MGNREGA no longer aligns fully with contemporary rural realities.

The Viksit Bharat - G RAM G Bill , 2025 responds to this context by modernising rural employment guarantees, strengthening accountability , and aligning employment creation with long term infrastructure and climate resilience goals.

Rationale for a New Statutory Framework

The need for reform is also rooted in broader socio -economic changes. MGNREGA was built in 2005, but rural India has transformed. 

Poverty levels declined from 27.1 per cent in 2011 -12 to 5.3 per cent in 2022 -23, supported by rising consumption, improved financial access , and expanded welfare coverage. With rural livelihoods becoming more diversified and digitally integrated, the open -ended and demand -driven design of MGNREGA no longer aligns fully with contemporary rural realities.

The Centre thinks G RAM G Bill , 2025 responds to this context by modernising rural employment guarantees, strengthening accountability , and aligning employment creation with long term infrastructure and climate resilience goals.

The Bill guarantees 125 days of wage employment per rural household in each financial year to such rural households whose adult members volunteer to undertake unskilled manual work, contributing to income security beyond the earlier 100-day entitlement , with an aggregated 60-day no -work period to ensure the availability of agricultural labour during peak sowing and harvesting season.Workers continue to receive 125 guaranteeddays of employment within the remaining 305 days , ensuring that both farmers and labourers benefit . T he disbursement of daily wages shall be made on a weekly basis or ,in any case , not later than a fortnight after the date on which such work was done.

Employment creation is integrated with infrastructure development through four priorityverticals:

• Water security through water -related works

• Core -rural infrastructure

• Livelihood - related infrastructure

• Special works to mitigate extreme weather events.

All assets created are aggregated into the Viksit Bharat National Rural Infrastructure Stack, ensuring a unified, coordinated national development strategy. Planning is decentralised through Viksit Gram Panchayat Plans , which are prepared locally and spatially integrated with national systems such as PM Gati Shakti.

The total estimated annual requirement of funds on wage, material , and administrative components is Rs. 1,51,282 crore , including the State share. Of this, the estimated Central share is Rs. 95,692.31 crore . This transition does not impose an undue financial burden on states.

The funding structure is calibrated to state capacity, with a standard cost - sharing ratio of 60:40 between the Centre and states , enhanced support of 90:10 for North -Eastern and Himalayan states , and 100 per cent central funding for Union Territories without legislatures . 

States were already bearing a share of material and administrative costs under th e earlier framework, and the move to predictable normative allocations further supports sound budgeting. Provisions for additional assistance to s tates during disasters and stronger oversight mechanisms also help reduce long term losses arising from misappropriation, reinforcing fiscal sustainability alongside accountability.

Conclusion

The Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 ,represents a decisive shift in India’s rural employment policy. While MGNREGA achieved significant gains in participation, digitisation , and transparency over time, persistent structural weaknesses limited its effectiveness. The new Bill builds on past improvements while addressing their shortcomings through a modern, accountable , and infrastructure -focused framework.

By expanding guaranteed employment, aligning work with national development priorities , and embedding strong digital governance, the Bill repositions rural employment as a strategic instrument for sustainable growth and resilient livelihoods, fully aligned with the vision of Viksit Bharat 2047.