India Plans Major Overhaul of Rural Jobs Programme, Renaming MGNREGA and Expanding Work Guarantee

India’s central government has proposed a sweeping restructuring of its flagship rural employment scheme, moving to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and replace it with a new framework that drops Mahatma Gandhi’s name. The proposed legislation, tentatively titled the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, seeks to redesign the nearly 20-year-old programme by increasing the guaranteed employment entitlement from 100 to 125 days per rural household. The revamp also aims to align the scheme more closely with rural asset creation and livelihood development, shifting it away from its original rights-based design introduced in 2005 .

The proposal has triggered sharp political debate, with opposition parties arguing that removing Gandhi’s name weakens the symbolic and moral foundation of one of India’s most important social protection programmes. Critics have also raised concerns about changes to funding structures, which could require state governments to shoulder a greater share of costs, potentially straining state finances. The government, however, maintains that the redesigned scheme will be more efficient, future-oriented, and better suited to meeting evolving rural employment and development needs. The bill is expected to face intense scrutiny as it moves through Parliament. More

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