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The Centre has proposed a comprehensive revamp of the rural employment guarantee programme by replacing MGNREGA with a new law titled the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin). The proposed framework raises the annual employment guarantee to 125 days per household and shifts the scheme from an open-ended demand model to a centrally sponsored structure with a defined Centre state funding pattern. The redesign places stronger emphasis on durable rural infrastructure, improved planning, and tighter digital controls to address long-standing concerns over leakages and weak asset creation.
The government has initiated steps to overhaul the rural employment guarantee programme, signalling a structural shift away from the existing MG-NREGA framework. The proposed legislation, the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, is intended to modernise the scheme in line with changes in rural economic conditions and repeated audit findings highlighting inefficiencies and misuse of funds. Advertisement
One of the most significant changes is the move from an open-ended, demand-driven model to a centrally sponsored scheme with a fixed funding structure. At present, the Centre bears the full cost of unskilled wages, which form nearly 75 percent of the total annual outlay of around INR 85,000-90,000 crore, while states contribute largely towards materials and skilled labour. Under the new framework, costs will be shared in a 60:40 ratio between the Centre and states, and 90:10 for north-eastern and hilly states, bringing uniformity with other central schemes.
The proposed law also increases the statutory guarantee of employment from 100 to 125 days per rural household. This expansion is aimed at providing stronger income support during periods of low agricultural activity. However, states will be allowed to identify up to 60 days in a year as no-work periods during peak farming seasons to avoid labour shortages for agriculture. If employment is not provided during eligible periods, the payment of unemployment allowance will remain a legal obligation.
A sharper focus has been placed on the nature of works undertaken. The redesigned scheme prioritises the creation of durable and productive rural assets, including water conservation projects, rural connectivity, climate-resilient infrastructure, and livelihood-supporting facilities. This marks a clear shift from scattered short-term works towards projects that can improve farm productivity, resilience, and long-term rural incomes.
Planning and monitoring mechanisms are also set to be strengthened. Village-level plans will need to align with broader district and national platforms, ensuring better coordination and asset quality. Enhanced use of digital tools such as geo-tagging, real-time monitoring, and data-based fraud detection is intended to curb leakages that have been flagged in several official reviews over the years.
The revamp reflects the government's view that the existing programme, launched two decades ago, no longer fully matches current rural realities. Declining poverty levels, higher rural wages, and wider access to banking and digital systems have prompted a reassessment of how public employment programmes should function and what outcomes they should deliver.
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