A Study on the Mahatma Gandhi National Rural Employment Guarantee Scheme
Context:
Recently, a study released by the NREGA Sangharsh Morcha and prepared by LibTech India reported a significant contraction in the operational scale of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in 2025–26.
Key Findings of the Study:
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- According to the study, although the number of registered households increased from 14.98 crore to 15.46 crore, a decline in the performance of MGNREGS has been recorded.
- Compared to 2024–25, 44 lakh fewer households and 67 lakh fewer workers were employed. Persondays declined by 21.5%, falling from 268.44 crore to 210.73 crore. Similarly, the average persondays per household decreased from 50.18 to 42.92.
- In addition, there was a sharp 40.5% decline in households completing 100 days of employment, and the average income per household fell by approximately ₹1,221. The decline was widespread, with 15 out of 20 major states reporting a reduction in persondays. Tamil Nadu and Haryana recorded the steepest declines, while only a few states showed marginal improvement.
- According to the study, although the number of registered households increased from 14.98 crore to 15.46 crore, a decline in the performance of MGNREGS has been recorded.
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About MGNREGA:
MGNREGA is a landmark social security legislation enacted in 2005 that provides a legal “Right to Work” to rural households in India. It is one of the world’s largest public employment programmes.
Objective:
The core objective of MGNREGA is to enhance livelihood security in rural areas by guaranteeing wage employment to adult members of rural households who are willing to undertake unskilled manual work.
Key Features:
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- 100 days of guaranteed wage employment per rural household annually
- Demand-driven system: work must be provided within 15 days of demand
- Unemployment allowance if work is not provided
- Legal entitlement-based framework
- Decentralised implementation through Gram Panchayats
- At least one-third participation of women (often higher in practice)
- Wage payments through Direct Benefit Transfer (DBT)
- Mandatory social audits for transparency and accountability
- 100 days of guaranteed wage employment per rural household annually
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From MGNREGS to VB-G RAM G Act, 2025:
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 marks a structural shift in rural employment policy.
Key features include:
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- Increase in guaranteed work from 100 to 125 days
- Shift from demand-driven to supply-based allocation
- 60:40 Centre–State funding structure
- Weekly wage payments instead of 15-day cycle
- 60-day agricultural pause during peak seasons
- Emphasis on asset creation, infrastructure, and skill development
- Use of AI-based monitoring and GPS tagging
- Increase in guaranteed work from 100 to 125 days
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Significance of the Findings:
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- Rural distress signal: Falling employment despite rising registrations indicates weakening rural job absorption.
- Consumption impact: Reduced workdays lower rural incomes and demand.
- Regional disparity: Uneven state performance highlights implementation gaps.
- Policy transition risk: Decline coincides with major restructuring, raising stability concerns.
- Rural distress signal: Falling employment despite rising registrations indicates weakening rural job absorption.
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Conclusion:
The sharp contraction in MGNREGS during 2025–26 highlights deepening challenges in rural employment generation at a critical policy juncture. While the proposed new framework aims to modernise and restructure rural job creation, its success will depend on preserving the foundational principle of MGNREGS, a legal guarantee of livelihood security for rural households.
