The Union government on Monday stated that the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission Gramin Act will come into force on July 1, and the Mahatma Gandhi National Rural Employment Guarantee Act will stand repealed on the same day.
The Ministry of Rural Development issued two gazette notifications to this effect on Monday.
The transition from MGNREGA to the new Act will be seamless and will not result in disruption for workers, the ministry said in a press release.
“Ongoing works under MGNREGA as on June 30th shall be saved and carried over in the new framework seamlessly by ensuring consistency with the provisions of Viksit Bharat G RAM G,” the government said.
Existing e-KYC verified MGNREGA job cards will remain valid under the new Act until Gramin Rozgar Guarantee Cards are issued, the ministry said.
“Workers without job cards may continue to register at the gram panchayat level,” the press release said. “Workers shall not be denied employment merely due to pending e-KYC, and facilitation arrangements for e-KYC completion shall continue at the field level by the state governments.”
The VB-G Ram G Act received presidential assent on December 21, two days after it was passed by Parliament amid protests by Opposition parties.
The MGNREGA, which was introduced in 2005 by the Congress-led United Progressive Alliance, guaranteed 100 days of unskilled work annually for every rural household that wanted it, covering all districts in the country.
Under the new law, the number of guaranteed workdays will increase to 125, while the states’ share of costs will rise to 40%. The Union government will continue to bear the wage component, with states sharing material and administrative expenses.
The legislation has drawn criticism from economists and labour rights experts, who have said that it consolidates decision-making with the Union government, while transferring greater financial burden on to the states.
Also read:
‘A bill to destroy MGNREGA’: Why experts fear the worst from new job guarantee bill
Five Opposition-ruled states – Karnataka, Kerala, Punjab, Telangana and Jharkhand – have passed resolutions opposing the VB-G Ram G Act, and seeking that the MGNREGA scheme be restored.
The Kerala government’s resolution said that the new Act would entail “severe financial burden on the states”, and that with its implementation, the “rights-based approach that was the essence of the existing scheme has vanished”.
The Punjab government had contended that the VB-G RAM G Act would severely impact families below the poverty line, Scheduled Caste communities and rural labourers who depend on MGNREGA to survive.
However, Union Rural Development Minister Shivraj Singh Chouhan expressed confidence that the VB-G Ram G Act would mark “the dawn of a new era in the lives of labourers”. He said that the scheme would facilitate activities such as water conservation and rural infrastructure development, and lead to the construction of roads, bridges, culverts, schools, and anganwadi buildings.
The Union government has made a budgetary allocation of more than Rs 95,600 crore for the financial year 2026-’27 for the scheme.
Written by Neerad Pandharipande. Edited by Nachiket Deuskar
Just 0.2% of readers pay for news. The others don’t care if it dies. You can help make a difference. Support independent journalism – join Scroll now.
We’re not driven by clicks or corporate interests – just honest, independent reporting. Keep us going. Support Scroll today!