The Indian government is preparing a significant overhaul of the country’s flagship rural employment programme, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), by introducing the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 often referred to as the Viksit Bharat Rozgar Bill.
The proposed legislation, which was introduced during the ongoing Winter Session of Parliament, aims to repeal MGNREGA, a law that has legally guaranteed wage employment to rural households for nearly two decades. If passed, the new bill will not only replace the existing framework but also restructure how employment support is delivered in rural India.
A New Vision for Rural Employment
Under the new framework:
Every rural household with adult members willing to perform unskilled manual work would be eligible for at least 125 days of guaranteed wage employment annually up from the current statutory 100 days.
The scheme will focus on infrastructure creation, water security, climate-resilient works, and improving rural livelihoods beyond manual labour.
It transitions the programme into a Centrally Sponsored Scheme (CSS) with a 60:40 funding share between the Centre and the States (90:10 for Himalayan and North Eastern states).
Officials say this shift aligns with the government’s broader ‘Viksit Bharat 2047’ vision, targeting sustained rural growth and employment diversification.
What Changes From MGNREGA?
MGNREGA, passed in 2005, was one of India’s most ambitious social welfare laws. It legally guarantees at least 100 days of work per year to rural households willing to do manual labour, with mechanisms for unemployment allowances if work was not provided within 15 days of request.
However, critics of MGNREGA pointed to implementation gaps including inconsistent workdays delivered and funding delays as areas needing reform.
The new bill seeks to address some of these issues by expanding the duration of guaranteed employment and tying efforts to asset creation, rural infrastructure, and climate adaptation activities.
Controversy and Political Backlash
The move has triggered sharp reactions:
Opposition leaders, including Rahul Gandhi and Priyanka Gandhi Vadra, have accused the government of sidelining Gandhi’s legacy by removing his name from the rural employment law, calling the step an affront to the values the original act stood for.
Political parties such as the DMK, Congress, PMK, and VCK are planning protests, arguing the change weakens the rights-based nature of the original act and shifts control towards the Centre.
State leaders have also voiced concerns. In Kerala, for instance, officials warn that the new funding model could impose an additional ₹1,600 crore annual burden on the state budget, threatening its ability to implement rural employment schemes effectively.
Beyond politics, policy experts and activists have sounded alarm bells:
Some argue that by shifting from a demand-driven legal guarantee to a scheme dependent on budgetary allocations and central planning, the new law may weaken rural workers’ entitlement to work.
Critics also note increased central control over where and how work is provided, potentially reducing the role of Gram Panchayats and local planning.
These observers suggest that while the intent to modernise rural employment is valid, repealing the core legal guarantee created by MGNREGA could undermine a system that has served as a social safety net for millions.
Looking Ahead
As Parliament debates the bill, the rural job programme’s future hangs in balance balancing promises of more work and modernised implementation against fears of diluted rights and increased state burdens.
Supporters argue the new scheme could revamp rural India by integrating work with sustainable development goals, while critics fear it may dismantle a cornerstone of India’s social welfare architecture built over the last two decades.
