The Union government is set to introduce a new Bill in Parliament to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), a flagship rural employment scheme launched by the Congress government in 2005. During the ongoing winter session of Parliament, the Centre plans to table the proposed legislation titled Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (VB G RAM G). Government sources say the move is aimed at aligning rural employment initiatives with the Viksit Bharat 2047 vision, and copies of the Bill have reportedly been circulated among Lok Sabha members.
Under the proposed Bill, the guaranteed employment period in rural areas is set to be increased from 100 to 125 days, offering expanded work opportunities. The legislation also mandates timely wage payments within seven to fifteen days, with provisions for an unemployment allowance in case of delays. Works under the scheme will be classified into four categories—water security, rural infrastructure, livelihood infrastructure, and disaster resilience—while biometric systems will be introduced to enhance transparency and accountability.
A major shift is proposed in the funding pattern. While the Centre currently bears 100 percent of wage costs under MGNREGA, the new scheme suggests a 60:40 cost-sharing model between the Centre and the states. For Northeastern states, the ratio will be 90:10, and in Union Territories, the Centre will continue to provide full funding. The Bill also introduces a formal grievance redressal mechanism to address workers’ complaints and ensure prompt resolution by officials.
The proposed replacement of MGNREGA has triggered political reactions, with the Congress party criticising the move, particularly the decision to remove Mahatma Gandhi’s name from the scheme. Senior Congress leader Priyanka Gandhi expressed strong opposition, arguing that the renaming undermines the legacy associated with one of the country’s most impactful social welfare programmes.