New Act for Employment Guarantee Scheme

The Central Government has taken a significant step towards replacing the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which was introduced to provide employment to the rural poor. A new scheme titled “Viksit Bharat – Guarantee for Rozgar and Aajeevika Mission Grameen (VBGRAMG)” has been proposed, and the related bill has been sent to the Lok Sabha.

If approved, the new scheme will replace MGNREGA and increase the guaranteed number of workdays from 100 to 125 days per year. Originally launched as NREGA in 2005, the scheme was renamed MGNREGA in 2009.

A committee appointed in 2022 to review the scheme found that in 2024–25, households received an average of only 50 days of employment, with limited families completing the full 100 days. Several states have since used their own funds to generate additional employment, prompting the Centre to consider a revamped framework.