MGNREGA 2005 is set to be replaced by VB-G RAM G 2025

SOCIAL – SCHEMES

13 JUNE 2026

• MGNREGA was launched in 2006 and completed 20 years of implementation in February 2026.
• Women have consistently formed a majority of the workforce, accounting for more than 58% of total workers during the last five years.
• Although the Act guarantees 100 days of employment per household annually, the average employment generated per household has remained around 45 days.
• The average wage rate under MGNREGA increased from ₹282.2 per person per day in 2021–22 to ₹342 per person per day in 2025–26.
• The new VB-G RAM G Act, 2025 proposes to increase the employment guarantee from 100 days to 125 days per household.
• The Union Government has allocated ₹92,550.17 crore as the interim budget for the implementation of VB-G RAM G across States.
• Out of this amount, Karnataka has been allotted ₹5,709.9 crore under the new scheme.

Significance of MGNREGA

1. MGNREGA was the first major legislation in India to provide a legally guaranteed Right to Work for rural households.
2. The scheme promoted equal wages for men and women, helping reduce gender-based wage discrimination.
3. It enhanced women’s financial inclusion by enabling many women to obtain job cards and open bank or post-office accounts in their own names.
4. MGNREGA established a wage floor in rural labour markets, strengthening workers’ bargaining power against exploitative wages.
5. By providing employment opportunities within villages, it helped reduce distress migration to urban areas and other states.
6. The scheme acted as an important social security safety net, particularly during periods of economic hardship, droughts, and other crises.

Major Criticisms of VB-G RAM G

1. End of Demand-Based Guarantee

• Employment depends on approved projects and available funds.
• Critics argue this weakens the “right to work”.

• Capped Employment

• States receive fixed allocations.
• Additional demand may remain unmet once allocations are exhausted.

• State Funding Burden

• States must contribute 40% of costs.
• Several States have raised concerns over fiscal stress.

• Seasonal Alignment Window

• States can halt works for up to 60 days during sowing and harvesting seasons.
• No unemployment allowance during this period.

• Increased Digitisation

• Greater dependence on biometric attendance and digital monitoring.
• Connectivity and technical failures may affect wage payments.

• Reduced Local Autonomy

• Shift from Gram Sabha-led planning to centrally guided priorities.