Source: PIB
Context:
The Union government has notified that from 1 July 2026, all “rules, notifications, schemes, orders and guidelines” framed under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005, will stand repealed — to be replaced by the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-G RAM G] Act, passed by Parliament in 2025.
Key Highlights
- Effective Date: 1 July 2026 — the VB-G RAM G Act comes into force.
- Repeal: All rules, notifications, schemes, orders, and guidelines under MGNREGA, 2005 stand repealed.
- New legislation: Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act — abbreviated VB-G RAM G.
- Passed by Parliament: Last year (2025).
- Procedural concern: The legislation was passed without pre-legislative consultations — drawing criticism from civil society and unions.
- Scope: Replaces India’s flagship rural employment guarantee programme operational since 2005.
- MGNREGA legacy figures:
- Around 15 crore active job-card holders (as of recent years).
- Around 6 crore households received work in FY24.
- Designed to provide 100 days of guaranteed wage employment per rural household per year.
- Underlying themes: Rural employment, social security, demand-driven welfare, federalism, and pre-legislative scrutiny.
About the News
What did the Union government notify?
That from 1 July 2026, all rules, notifications, schemes, orders, and guidelines under the MGNREGA, 2005 will stand repealed, and the new VB-G RAM G Act will come into force.
What does VB-G RAM G stand for?
Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) — the new rural employment and livelihoods guarantee law that replaces MGNREGA.
When was the new Act passed?
Parliament passed the legislation last year (2025).
What is the procedural concern flagged in the news?
That the Act was passed by Parliament without pre-legislative consultations — i.e., without inviting public, expert, or civil-society comment on a draft before it was introduced, as recommended under the 2014 Pre-Legislative Consultation Policy.
Why is this transition significant?
Because MGNREGA has been India’s largest social-security and rural-employment programme for two decades, with crores of beneficiaries, billions in annual expenditure, and a strong rights-based design — making its replacement a major shift in welfare architecture.
What was MGNREGA designed to do?
To provide a legal guarantee of at least 100 days of wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work — alongside the creation of durable rural assets.
Why has the transition raised concerns?
Civil society groups, opposition parties, and labour unions have raised concerns about the absence of pre-legislative consultation, the potential dilution of the rights-based architecture, and uncertainty regarding the continuity of beneficiaries, ongoing works, and wage payments.
What happens to ongoing MGNREGA works and job cards?
The notification states that all rules, schemes, and guidelines under MGNREGA stand repealed — implying that ongoing operations will transition to the new VB-G RAM G framework. Detailed transition guidelines are expected to be issued by the Ministry of Rural Development.
What is the broader policy signal?
A move away from the legally enforceable, demand-driven “Right to Work” model of MGNREGA towards what appears to be a mission-mode framework centred on rozgar (employment) and ajeevika (livelihoods) under the Viksit Bharat umbrella.
Background Concepts
What was MGNREGA?
The Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (originally called NREGA; renamed in 2009) was a landmark legislation guaranteeing at least 100 days of wage employment per financial year to every rural household whose adult members volunteer to do unskilled manual work. It came into effect in February 2006, initially in 200 districts, and was extended to all rural districts by April 2008.
What is the constitutional basis for the right to work?
Article 41 of the Directive Principles of State Policy directs the State to make effective provision for securing the right to work, education, and public assistance in cases of unemployment, old age, sickness, and disablement. Article 39(a) also enjoins the State to ensure adequate means of livelihood.
What were the key features of MGNREGA?
- Legal entitlement to 100 days of wage employment per rural household per year.
- Demand-driven: Work to be provided within 15 days of demand; else, unemployment allowance.
- Wages paid via bank/post office accounts (DBT).
- Social audit mandatory through Gram Sabhas.
- One-third of beneficiaries to be women.
- Focus on creation of durable rural assets — water conservation, drought-proofing, rural roads, etc.
Who implemented MGNREGA?
The Ministry of Rural Development at the Central level; State governments at the state level; and the Gram Panchayats at the local level — making it one of the most decentralised welfare programmes globally.
What is the Pre-Legislative Consultation Policy?
A 2014 policy under which every department/ministry, before legislating, is expected to publish the draft Bill for at least 30 days for public, expert, and stakeholder comments. The policy is non-binding but reflects principles of deliberative democracy and parliamentary scrutiny.
What is the rights-based approach to welfare?
A model in which beneficiaries have a legally enforceable right to specific services or entitlements — making the State legally accountable. MGNREGA, the Right to Education Act, the Right to Information Act, and the National Food Security Act are key examples.
What were the achievements of MGNREGA?
Independent studies have credited MGNREGA with reducing rural poverty, raising rural wages, smoothing consumption during distress, empowering women, and building rural infrastructure. It was also a major counter-cyclical buffer during the COVID-19 pandemic, when demand for work surged dramatically.
What were the criticisms of MGNREGA?
Critics pointed to delayed wage payments, corruption and ghost beneficiaries, weak quality of assets created, leakages despite DBT, and budgetary cuts in recent years. Some also argued it kept labour locked in rural areas instead of allowing productive migration.
What was the budget for MGNREGA in recent years?
MGNREGA’s allocation has typically ranged between ₹60,000–86,000 crore annually, with FY21 (COVID year) seeing a record outlay of over ₹1.1 lakh crore. The actual expenditure often exceeded budget estimates due to demand-driven nature.
What is Viksit Bharat?
“Viksit Bharat” (“Developed India”) is the government’s overarching vision for transforming India into a developed economy by 2047 — the centenary of independence. It encompasses goals across infrastructure, manufacturing, agriculture, social welfare, and human capital.
What is the role of Gram Sabhas in rural employment programmes?
Gram Sabhas — the village assemblies of all adult voters — play a central role in identifying works, approving plans, monitoring implementation, and conducting social audits. They are vehicles of participatory democracy at the grassroots, mandated under the 73rd Constitutional Amendment.
Practice MCQs
Q1. With reference to the recent notification on the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) [VB-G RAM G] Act, consider the following statements:
- The Act will come into force from 1 July 2026.
- All rules, notifications, and schemes under MGNREGA will stand repealed from that date.
- The legislation was passed by Parliament without pre-legislative consultations.
- The legislation was passed by the Union Cabinet without parliamentary approval.
How many of the above statements are correct? (a) Only one (b) Only two (c) Only three (d) All four (e) None
Q2. Consider the following statements about MGNREGA, 2005:
- It guaranteed at least 100 days of wage employment per rural household per financial year.
- It was originally enacted as NREGA in 2005 and renamed MGNREGA in 2009.
- It is rooted in Article 41 of the Directive Principles of State Policy.
- It applied only to urban households.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 2 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Q3. Consider the following statements about the Pre-Legislative Consultation Policy, 2014:
- It mandates that draft legislation be published for at least 30 days for public comment before introduction in Parliament.
- It is a binding constitutional requirement.
- It applies to all central ministries and departments.
- It aims to promote deliberative democracy.
Which of the above are correct? (a) 1, 3 and 4 only (b) 1, 2 and 4 only (c) 2 and 3 only (d) 1 and 4 only (e) All four
Q4. Consider the following statements about the implementation of MGNREGA:
- The Ministry of Rural Development is the nodal central ministry.
- Gram Panchayats are the primary implementing agencies at the village level.
- Social audits are conducted through Gram Sabhas.
- Wages are paid in cash directly at the worksite without any bank involvement.
Which of the above are correct? (a) 1, 2 and 3 only (b) 1, 3 and 4 only (c) 2 and 4 only (d) 1 and 4 only (e) All four
Answer Key
- (c) — Statements 1, 2, 3 are correct. Statement 4 is wrong; the article specifies that the legislation was passed by Parliament last year — it was not done by the Union Cabinet alone.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; MGNREGA applied to rural households, not urban ones.
- (a) — Statements 1, 3, 4 are correct. Statement 2 is wrong; the Pre-Legislative Consultation Policy is non-binding — a guideline, not a constitutional requirement.
- (a) — Statements 1, 2, 3 are correct. Statement 4 is wrong; MGNREGA wages are paid via bank or post-office accounts (DBT mode), not in cash at the worksite.
Exam Relevance
| Exam | Relevance |
|---|---|
| UPSC Prelims | GS Paper II — Indian Polity, Government Schemes, Welfare programmes |
| UPSC Mains | GS Paper II — Welfare schemes, Issues relating to development & management of Social Sector, Rights-based legislation |
| State PCS | Indian Polity, Welfare schemes, Current Affairs |
| Banking (RBI Gr B, NABARD) | ESI / Economic and Social Issues — high importance |
| SSC / Insurance / Railway | Static GK on MGNREGA, NRLM, government schemes |
