Source: TH
Subject: Government Schemes
Context: The Centre is set to amend the MGNREGA Act to rename the flagship rural employment scheme as “Pujya Bapu Gramin Rozgar Yojana” and may raise the guaranteed work limit from 100 to 125 days.
About Proposal to rename MNREGA:
What it is?
- MGNREGA is a demand-driven, rights-based rural wage employment programme guaranteeing unskilled manual work to rural households, aimed at livelihood security and creation of durable assets.
Launched in:
- 2005, brought into force through the MGNREGA Act, 2005
- Came into effect in phases from 2006 across India
Historical Background:
- Recommended by Narsimha Rao’s Employment Assurance Scheme (1993) and Food for Work Programme (2004).
- Envisioned as a legal right to work, inspired by Gandhian ideals of self-reliant rural livelihoods.
- Became the largest social security programme in the world.
Aim of MGNREGA:
- Guarantee 100 days of wage employment (now proposed 125 days).
- Enhance livelihood security, reduce distress migration.
- Strengthen Panchayati Raj Institutions through decentralized planning.
Key Features of the Scheme:
- Rights-based entitlement:
- Every adult rural household member can demand unskilled manual work.
- Right to unemployment allowance if work not provided within 15 days.
- Wage & Material Ratio: 60:40 ratio at Gram Panchayat level.
- Women-Centric Approach: At least 1/3rd beneficiaries must be women; actual participation > 58% (2024–25).
- Transparent Payment Systems: Payment via Aadhaar-Based Payment System (ABPS); 99%+ wage payments through e-FMS.
- Strengthening Natural Resource Base: Focus on water conservation, afforestation, land development, and soil moisture restoration.
- Social Audit: Mandatory audits by Gram Sabha to ensure transparency and accountability.
Recent Amendments:
- Renaming and Expansion of Employment (2025 Proposal):
- Rename MGNREGA as “Pujya Bapu Gramin Rozgar Yojana”.
- Increase employment from 100 to 125 days.
- Introduce exclusion clauses based on a State’s economic indicators.
- Tweaks in funding pattern.
- Priority for Water Conservation (Sept 2025 Amendment)
- MGNREGA’s Schedule-I amended to earmark:
- 65% funds in Over-exploited & Critical blocks
- 40% funds in Semi-critical blocks
- 30% funds in Safe blocks
- Project UNNATI (Skill Upgradation):
- Launched in 2019 to skill MGNREGA workers.
- Target 2 lakh workers however 90,894 trained till March 2025.









