Context:
The Ministry of Rural Development is considering allowing verified MGNREGA job cards to remain valid during the transition phase to the new Viksit Bharat–Gramin Rozgar and Ajeevika Mission (VB-GRAM) Act, 2025, which replaces the MGNREGA Act.
Key Highlights:
New Rural Employment Law
- The VB-GRAM G Act, 2025 was passed by Parliament in December 2025.
- It replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2008.
Enhanced Employment Guarantee
- The Act increases guaranteed employment from 100 days to 125 days per year.
- It also increases the financial contribution of State governments.
Transition Arrangements
- During the transition period:
- Verified MGNREGA job cards will remain valid.
- Beneficiaries with Aadhaar-seeded and e-KYC verified job cards can continue accessing employment benefits.
- Around 75% of job cards have already been Aadhaar-seeded and verified.
Administrative Reforms
- States will be given six months to design schemes under the new law.
- Section 37 of the Act provides transitional provisions, ensuring continuity of earlier MGNREGA actions.
Transparency and Monitoring Mechanisms
- Social audits will be strengthened through the Panchayat Nirnay mobile application.
- New transparency measures include:
- Weekly public disclosure of ongoing works
- E-Measurement Book (e-MB) to track work progress and wage payments.
Relevant Prelims Points:
- MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act), 2005
- Provides at least 100 days of guaranteed wage employment per year to rural households.
- A rights-based employment guarantee programme.
- Implemented by the Ministry of Rural Development.
- Key Features of MGNREGA
- Demand-driven programme.
- Focus on unskilled manual work.
- Social audit is mandatory for transparency.
- Promotes rural asset creation and livelihood security.
- e-KYC (Electronic Know Your Customer)
- Digital process used to verify identity using Aadhaar or biometric data.
- Social Audit
- A participatory process where local communities review implementation of government programmes.
Relevant Mains Points:
Importance of Rural Employment Schemes
- Provide livelihood security to rural households.
- Reduce distress migration.
- Create durable rural assets such as ponds, roads, and irrigation systems.
Significance of VB-GRAM G Act
- Increasing guaranteed workdays to 125 days strengthens rural income support.
- Greater state participation can improve localisation of development schemes.
Administrative and Governance Improvements
- Integration of digital monitoring tools (e-MB, apps) enhances transparency.
- Public disclosure and social audits promote accountability.
Challenges
- Potential fiscal burden on states due to increased funding requirements.
- Need to ensure timely wage payments and effective implementation.
- Risk of exclusion due to digital verification requirements.
Way Forward
- Ensure smooth transition from MGNREGA to VB-GRAM framework without disrupting livelihoods.
- Strengthen capacity of Panchayati Raj institutions for implementation.
- Improve digital infrastructure and grievance redress mechanisms.
- Maintain the rights-based character of rural employment programmes.
UPSC Relevance:
- Prelims: MGNREGA provisions, social audit, Aadhaar-based e-KYC.
- Mains: GS-2 (Governance and welfare schemes) and GS-3 (inclusive growth and rural development).