Modi Govt Plans To Rename MGNREGA, Drop Mahatma Gandhi’s Name From Rural Jobs Scheme
The Narendra Modi government is set to rename the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), the world’s largest rural jobs programme, through a new proposed law titled the Viksit Bharat, Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill.
If passed by Parliament, the law will be known by the acronym VB–G RAM G Act, removing Mahatma Gandhi’s name entirely from the scheme.
The proposed Bill promises a statutory guarantee of 125 days of wage employment in a financial year for rural households whose adult members volunteer for unskilled manual work.
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This is an increase from the current MGNREGA guarantee of 100 days, which is demand-driven.
However, several provisions in the Bill have sparked serious concerns among opposition parties and state governments.
Under the new framework, the scheme will function as a Centrally Sponsored Scheme, with costs shared between the Centre and states. While northeastern states, Himalayan states, and Jammu and Kashmir will continue with a 90:10 Centre-state funding split, other states may have to bear up to 40% of the cost, adding pressure to already strained state finances.
The Bill also allows state governments to declare up to 60 days per year as peak agricultural seasons, during which no work can be provided under the scheme.
Critics argue this could force rural labourers into private agricultural work, weakening their bargaining power and keeping wages low.
Another contentious clause gives the Union government the power to freeze funds if it receives complaints about fund misuse and is “prima facie satisfied” that an investigation is needed.
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This provision raises fears of political misuse, especially in opposition-ruled states. Payments under MGNREGA have already been frozen in West Bengal in recent years.
Further, the Centre will decide state-wise fund allocations based on “objective parameters” it prescribes.
This could reduce funds for relatively developed states like Kerala and Tamil Nadu if poverty indices are used as the main benchmark.
CPI(M) MP John Brittas sharply criticised the proposal, calling it “cost-shifting by stealth, not reform.”
VB–G RAM G Bill repealing MGNREGA: removing Mahatma Gandhi was only the trailer. The real damage is deeper.
Govt removed the soul of a rights-based guarantee law and replaced it with a conditional, centrally controlled scheme stacked against States & workers.
“125 days” is the…
— John Brittas (@JohnBrittas) December 15, 2025
He warned that replacing a demand-driven employment guarantee with fixed allocations means that “when funds run out, rights run out.”
He also said the Bill sidelines Panchayats, increases central control through digital systems, and risks excluding workers due to technological failures.
Opposition leaders argue that while the government claims reform, the proposed law weakens decentralisation and dilutes the core rights-based spirit of MGNREGA, turning it into a centrally controlled scheme rather than a guaranteed rural safety net.
(With inputs from The Wire)
