Government Plans Major Overhaul of MGNREGA, Proposes New ‘Viksit Bharat Gram Rojgar Yojana

The Union government is preparing a major restructuring of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), with plans to introduce a new rural employment framework tentatively titled the Viksit Bharat Gram Rojgar Yojana. The move is aligned with the government’s broader Viksit Bharat 2047 vision, which focuses on long-term asset creation, productivity-driven employment, and rural economic transformation.

MGNREGA, launched in 2005, has served as India’s largest social safety net by guaranteeing 100 days of wage employment to rural households. While the scheme has played a crucial role in poverty alleviation and income support, the government believes that changing rural realities now require a shift from demand-driven relief work to development-oriented employment.

 Government Is Rethinking MGNREGA

According to policymakers, MGNREGA has increasingly become a consumption-support scheme rather than a tool for sustainable rural growth. Rising fiscal costs, delays in wage payments, and allegations of inefficiencies have prompted calls for reform. The proposed new scheme aims to link employment generation with the creation of durable assets, skill development, and convergence with agriculture, irrigation, and rural infrastructure projects.

Officials argue that the new framework would encourage productive work such as water conservation, farm-level infrastructure, storage facilities, rural roads, and climate-resilient assets, rather than short-term relief-based employment.

What Is the Viksit Bharat Gram Rojgar Yojana?

The proposed Viksit Bharat Gram Rojgar Yojana is expected to focus on:

• Asset-based rural employment instead of temporary wage work

• Skill-linked job creation to improve employability

• Convergence with existing schemes like PM Awas Yojana, Jal Jeevan Mission, and agriculture programs

• Outcome-based funding, rewarding states for quality assets and timely execution

Unlike MGNREGA’s open-ended, demand-driven model, the new scheme may operate with structured planning at the gram panchayat level, ensuring employment aligns with local development priorities.

Concerns and Criticism

The proposal has sparked debate among economists, opposition leaders, and rural activists. Critics warn that weakening or replacing MGNREGA could reduce income security for the poorest rural households, especially during periods of drought, inflation, or economic slowdown. They argue that MGNREGA acts as a counter-cyclical lifeline, providing immediate employment when other opportunities dry up.

There are also concerns about whether a more structured scheme could exclude vulnerable groups, particularly women and landless laborers, who form a large share of MGNREGA workers.

Government’s Response

The government has clarified that the intent is not to abandon rural employment but to modernize and improve its effectiveness. Officials suggest that the new scheme would retain the core objective of employment generation while ensuring better productivity, transparency, and long-term economic benefits for villages.

Any major change is expected to be implemented gradually, with consultations involving states and stakeholders before final rollout.

The Bigger Picture

The proposed shift reflects a broader policy transition—from welfare-based support to development-led growth. If implemented carefully, the Viksit Bharat Gram Rojgar Yojana could reshape rural employment by combining income support with infrastructure creation. However, experts stress that safeguards must be built in to ensure no rural household is left without a safety net.