Scrapping MGNREGA – Towards Viksit Bharat Guarantee for Rozgar

Context:
The Economic Survey 2025–26 justifies the phasing out of MGNREGA based on structural limitations and a strengthened rural economy, replacing it with the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025.

Key Highlights:

• Decline in MGNREGA Activity

• Person-days generated fell 53%: 389.09 crore (2020–21) → 183.77 crore (2025–26).
• Rural unemployment declined: 3.3% (2020–21) → 2.5% (2023–24).
• Women’s participation increased: 48% (2013–14) → 58.1% (2024–25).

• Rural Economic Strength

• NABARD RECSS (Nov 2025): Indicates high rural consumption, rising income, and improved credit access.
• Structural improvements reduce reliance on wage guarantee programs.

• Structural Flaws in MGNREGA

• Mismatch between expenditure and physical progress.
• Challenges with digital attendance and fund allocation.
• Constraints in timely payments and infrastructure delivery.

• Replacement Initiative

• Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025:
  • Focus on targeted employment.
  • Encourages livelihood enhancement and ecosystem integration.

Relevant Prelims Points:

• MGNREGA: Guarantees 100 days of wage employment per year in rural areas.
• NABARD: Apex development finance institution promoting sustainable rural development.
• RECSS Survey: Rural Economic Consumption and Credit Survey, measures consumption and credit trends.
• Viksit Bharat Guarantee for Rozgar (2025): Replacement employment framework.

Relevant Mains Points:

1. Rural Employment and Livelihoods

• MGNREGA critical for income stabilization and basic infrastructure.
• Replacement aims to address structural inefficiencies.

2. Governance & Policy Design

• Digital tools: Attendance systems, fund monitoring.
• Need for real-time tracking, timely wage disbursal.

3. Economic Implications

• Strong rural economy reduces dependence on employment guarantee schemes.
• Targeted programs can better allocate resources to productive projects.

4. Social Justice

• Women empowerment through higher participation.
• Potential to diversify rural livelihoods beyond agriculture.

Way Forward:

• Strengthen implementation of Viksit Bharat Guarantee.
• Ensure robust monitoring and evaluation.
• Integrate skill development and income-generating opportunities.
• Maintain focus on vulnerable households and women’s participation.

UPSC Relevance:

• GS 1: Post-independence rural development.
• GS 2: Governance, social justice.
• GS 3: Rural employment, fiscal policy.
• Prelims: MGNREGA features, NABARD, Viksit Bharat Guarantee.