The Union Government introduced the Mahatma Gandhi National Rural Employment Guarantee (Amendment) Bill, 2025 in Parliament recently. It aims to reform and modernize the flagship rural employment scheme (MGNREGA), which was launched in 2005. The Bill replaces the old 2005 Act and incorporates several changes, including allowing states to use MGNREGA funds for other rural development works and introducing new eligibility criteria. Opposition parties and experts have raised concerns that it could dilute the original intent of providing 100 days of guaranteed wage employment to rural households.

Key Provisions of the Bill:

• Shift from Guaranteed Employment to Development Focus: Allows states to use MGNREGA funds for broader rural infrastructure and development projects (e.g., roads, irrigation, housing) instead of strictly providing unskilled manual work.
• New Eligibility and Work Norms: Introduces a “plain reading” of unskilled work, but allows convergence with other schemes. States can decide on priority works.
• Fund Allocation Flexibility: Central government can now decide on “notified” schemes and allocate funds directly, reducing state-level discretion.
• Timeline for Work Completion: States must complete works within a specified period; non-compliance may lead to fund cuts.
• Convergence with Other Schemes: Encourages integration with schemes like PMAY-G (housing), Jal Jeevan Mission, etc., to avoid duplication.

Major Challenges:

• Dilution of Core Objective: Critics argue it shifts MGNREGA from a rights-based employment guarantee to a development fund scheme, potentially reducing job creation during lean agricultural seasons.
• Risk of Corruption and Misuse: Greater flexibility in fund use could lead to diversion for non-employment projects, as seen in past convergence schemes.
• State-Central Tension: Central government’s increased control over funds may undermine federal principles and state autonomy.
• Impact on Vulnerable Groups: Women, SC/ST households, and landless laborers who rely heavily on MGNREGA for income may face reduced opportunities.
• Lack of Consultation: Opposition claims the Bill was introduced without sufficient discussion or stakeholder input, raising fears of hasty implementation.

Way Forward:

• Strengthen Transparency: Implement real-time digital monitoring, social audits, and geo-tagging of all works to prevent misuse.
• Protect Core Guarantee: Ensure at least 100 days of employment remains a legal right, with convergence as an optional supplement.
• Capacity Building: Train state officials and gram panchayats for better planning and execution.
• Inclusive Dialogue: Hold wider consultations with states, civil society, and workers’ unions before final passage.
• Pilot Testing: Introduce reforms in select districts as pilots to assess impact before nationwide rollout.

Conclusion:

The MGNREGA Amendment Bill, 2025, has the potential to make the scheme more efficient and aligned with modern rural development needs. However, any reforms must protect the constitutional right to work (Article 21) and the original spirit of providing dignified employment to the poorest. Without strong safeguards, the Bill risks converting a lifeline for millions into a mere development fund, undermining its transformative impact on rural poverty. Balanced implementation, transparency, and federal cooperation are essential for its success.

Article Based Mains Questions : UPSC/PCS/250/200 words

Qn.1 “Examine the major structural changes proposed under the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025 in comparison to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005. Assess their implications for rural employment security, asset creation, and welfare delivery. Also, discuss the potential challenges in implementation.