Context:
The Union Government is likely to introduce a Bill during the current Winter Session of Parliament to rename the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) as ‘Pujya Bapu Gramin Rozgar Yojana’. The proposed changes may also include an increase in guaranteed workdays and structural reforms in scheme implementation.
Key Highlights:
Renaming of the Scheme
- Proposed new name: Pujya Bapu Gramin Rozgar Yojana.
- Original legislation: National Rural Employment Guarantee Act (NREGA) passed on 25 August 2005.
- Renamed as MGNREGA in 2009 to honour Mahatma Gandhi.
Increase in Guaranteed Workdays
- Current guarantee: 100 days of wage employment per rural household per year.
- Proposed increase: 125 days.
- Average employment generated in the last five years: 50.35 days per household, indicating underutilisation.
Proposed Structural Reforms
- Amendments may incorporate recommendations of the Amarjeet Sinha Committee.
- Possible introduction of exclusionary clauses based on state-level economic indices.
- Likely changes in the funding pattern between Centre and States.
Purpose and Role of MGNREGS
- Acts as a fallback employment mechanism during agrarian distress and economic shocks.
- Provides unskilled manual work to adult members of rural households.
Review and Rationale
- 2022 review highlighted:
- Inter-state disparities in employment generation
- Lower fund utilisation in states with higher poverty levels
Relevant Prelims Points:
- Issue: Reform and renaming of India’s flagship rural employment scheme.
- Causes:
- Need to improve coverage, efficiency, and equity
- Government Initiatives:
- Proposed increase in workdays, funding restructuring
- Benefits:
- Enhanced income security for rural households
- Better resilience during economic downturns
- Challenges:
- Delays in wage payments
- Regional inequalities
- Impact:
- Affects rural livelihoods, consumption demand, and poverty reduction
Relevant Mains Points:
- Key Facts & Provisions:
- MGNREGA: Legal guarantee of wage employment under Article 41 (DPSP) spirit
- Demand-driven scheme with time-bound wage payment
- Static + Conceptual Linkages:
- Role of public works in counter-cyclical fiscal policy
- Employment as a tool of social protection
- Economic & Governance Dimensions:
- Fiscal burden vs social returns
- Cooperative federalism in scheme implementation
- Way Forward:
- Ensure adequate and timely fund release
- Use technology for transparency without excluding beneficiaries
- Rationalise reforms without diluting rights-based character
- Strengthen monitoring and grievance redressal mechanisms
UPSC Relevance (GS-wise):
- GS 2: Governance – Welfare Schemes, Policy Reforms
- GS 3: Economy – Employment, Inclusive Growth
- Prelims: Scheme features, timelines, committees