The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is currently the Vikasit Bharat-Guarantee for Rozgar Ajeevika Mission (Gramin) Act, which has completed 20 years on February 2, 2026. If we look at the progress of this Act, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was enacted in 2005 but has been implemented as a rights-based social security scheme since February 2, 2006. It was created to increase livelihood security in rural areas by guaranteeing at least 100 days of wage employment in a financial year to all adult members who voluntarily come forward to do unskilled manual work. Its main objectives are to reduce rural poverty, generate employment, prevent hardship migration, create community assets, strengthen decentralized planning through Panchayati Raj institutions, and strive for inclusive growth by giving priority to women, Scheduled Castes and Scheduled Tribes.
The programme focuses on water conservation, drought prevention, land development, flood control, and rural connectivity. It was launched in 200 backward districts in 2006, expanded to 330 districts in 2007, and was implemented in all rural districts of India by 2008. Today, it is implemented in all states and union territories except urban areas. The programme is demand-driven, with legal provisions for unemployment benefits if work is not provided. Transparency is ensured through social audits and public disclosure. The programme provides several benefits in promoting rural development and social security in India. Along with guaranteed wage employment, it helps reduce rural poverty, unemployment, and rural-urban migration.
The scheme has improved the income security and purchasing power of poor rural households. It has empowered women by ensuring equal wages with at least one-third participation. It has strengthened democracy through the involvement of Panchayati Raj institutions. The creation of durable assets such as ponds, roads, and irrigation facilities can contribute to long-term rural development. However, the program faces significant challenges, including delays in wage payments, insufficient funds, corruption, fake job cards, leakages, technical planning, and lack of awareness among beneficiaries. Despite these challenges, the scheme has been a vital lifeline for rural India. The performance of the program has been mixed. It cannot be said whether it is a complete success or a complete failure.
The Government of India has reported spending of about ₹5 lakh crore on the Mahatma Gandhi National Rural Employment Guarantee Act in the last eight years. In recent years, the annual central allocation has been around ₹85,000–₹86,000 crore. The total expenditure in a financial year has reached tens of thousands of crores as states use these funds for employment. Among the states, some states such as Andhra Pradesh, Chhattisgarh, Himachal Pradesh, Kerala, Rajasthan, Tamil Nadu, and Uttar Pradesh have been at the forefront in terms of better performance, timely payment of wages, and more efficient use of funds. This is due to strong planning and administrative capabilities. Bihar, Odisha, Gujarat, Maharashtra, and some northeastern states have weak implementation. Telangana recently
recorded one of the lowest average working days per household. Although the Mahatma Gandhi National Rural Employment Guarantee Scheme is a large expenditure scheme affecting millions of people, the quality of implementation still varies significantly across Indian states. Vikasit Bharat-Guarantee for Rozgar Ajeevika Mission (Gramin) VB-GRAMG Act The Economic Survey 2025-26, introduced on January 29, 2026, announced that the 20-year- old Mahatma Gandhi National Rural Employment Guarantee Act will be replaced by the Vikasit Bharat-Guarantee for Rozgar Ajeevika Mission (Gramin), 2025 (VB-GRAMG), citing the need to address structural deficiencies, a strong rural economy and a shift from a labour-intensive model to one that also focuses on infrastructure and asset creation capacity.
The government argues that the Mahatma Gandhi National Rural Employment Guarantee Act has led to a decline in demand for traditional jobs, necessitating a “legislative replacement”. The move was criticised by opposition parties as a dilution of the “right to work” and a reduction in social protection. The Union Budget for 2025-26 allocated ₹86,000 crore (Rs 860 billion) for the Rural Employment Guarantee Scheme. As of November 26, 2025, the Centre had released over ₹68,393 crore to states for the scheme. There was a 25.6% decline in 2025-26 compared to 2023-24. According to the biennial tracker conducted by Libtech India (as of November 2025), out of the 20 states surveyed, 11 states, including Uttarakhand and Telangana, reported a decline in employment.
As of the end of January 2026, the official website recorded 12.18 crore active workers for 2025-26. The government has announced a hike in wage rates for the employment programme by 2.33% to 7.48% for the year 2025-26. Haryana recorded the highest wage rate of ₹400 per day. The mandatory implementation of Aadhaar-based e-KYC since the end of 2025 has been identified as a major hurdle, with over 27 lakh workers being laid off between October-November 2025 due to technical issues and data mismatch. Job Card Verification: Concerns have been raised that over 21 lakh active workers in Andhra Pradesh alone are at risk of losing their jobs due to incomplete e-KYC.
The Centre has increased the work limit under the scheme for Jammu & Kashmir to 150 days for the financial year 2025-26. A recent law (VB-G RAM G Act, 2025) proposes to increase this to 125 days. In the Union Budget 2026-27, the highest priority rural employment programme, Rozgar Ajeevika Mission-Gramin (VB-G RAM G), has been allocated Rs. 95,692 crore. This is the single largest allocation in the Budget for the Rural Development Department for this financial year. It seeks to develop self-reliant villages in line with the vision of Vastu Vikasit Bharat 2047.
Under this, the Centre will fund 60% of the cost of the scheme, while the states will share the remaining 40% (with special provisions for North-Eastern and Himalayan states), which aims to promote cooperative federal implementation and accountability. Overall, the emphasis on GRAMG in the Budget 2026 reflects the policy priority on rural employment, poverty alleviation and community asset creation. Over the past 20 years, the impact of the Mahatma Gandhi National Rural Employment Guarantee Act on rural resilience
in India has been undeniable. Transparency, timely disbursements, and alignment with sustainable development goals are crucial to maintain the relevance of Vikasit Bharat- Guarantee for Rozgar Ajeevika Mission (Gramin) in the coming decades.
