The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, guaranteed 100 days of wage employment annually to rural households, becoming one of India’s largest rights-based welfare schemes to combat rural poverty and unemployment. Originally the National Rural Employment Guarantee Act, it was renamed ahead of 2009 elections and implemented nationwide by 2008.
Parliament has passed the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, replacing the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The legislation introduces a new framework guaranteeing 125 days of rural employment annually, while requiring states to shoulder 40% of the total funding burden.
The Rajya Sabha cleared the bill shortly after midnight following an eight-hour debate, hours after its passage in the Lok Sabha amid opposition protests. The measure now awaits presidential assent to become law. Opposition parties staged a 12-hour overnight protest inside the Parliament complex, accusing the government of dismantling a rights-based welfare scheme and burdening states with additional costs.
Rural Development Minister Shivraj Singh Chouhan defended the move, describing it as a modernization push to curb inefficiencies and align rural development with the Viksit Bharat 2047 vision. The bill also allows states to pause implementation during peak agricultural seasons and introduces digital oversight tools such as biometric verification, GPS monitoring, and AI-based auditing.
Under the new framework, the total estimated annual funding stands at ₹1.51 lakh crore, with the Centre contributing ₹95,692 crore. Northeastern and Himalayan states will receive a 90:10 cost-sharing ratio, while others follow a 60:40 split between the Centre and states.
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