In year NDA passed law to replace MGNREGA, 8% dip in families that availed the rural job scheme

As the NDA government moves to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) with the Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (GRAMIN), official data shows that 5.32 crore households availed the scheme in the 2025–26 fiscal year, an 8 per cent decline from the previous year.

The figure is likely to be revised upwards as muster rolls data of the last week of March will get updated in the following fortnight or by April 15.

The number of households that availed MGNREGS in the 2025–26 fiscal year was lower than last year’s 5.78 crore. However, it remains higher than pre-COVID levels at about 5 crore households in 2019–20, after adjusting the national figure of 5.48 crore by excluding West Bengal’s 54.57 lakh.

The figure for the 2025-26 fiscal year does not include West Bengal’s beneficiaries, as no work was taken up under MGNREGS in the state. In 2025-26, MGNREGS demand was higher only during May-June compared to the corresponding months of the previous fiscal year, while it was lower in the other months.

MGNREGS, launched in 200 most backward rural districts of the country in 2006-07, was extended to an additional 130 districts during 2007-08, and to the entire country from the financial year 2008-09. The scheme saw a spike in demand for work during 2020-21, when a record 7.55 crore rural families availed of it in the wake of the pandemic.

The scheme became a safety net for migrants who returned to their villages during the COVID-19 lockdown in 2020. However, since then, the number of families that have worked under MGNREGS has gradually come down — 7.25 crore in 2021-22, 6.18 crore in 2022-23, 5.99 crore in 2023-24, and 5.78 crore in 2024-25. The last three financial years (2022-23 to 2024-25) do not include MGNREGS beneficiary figures for West Bengal, where the scheme has been suspended since March 2022.

In December last year, the NDA government enacted the VB-G RAM G Act, 2025, to repeal the two-decade-old MGNREGS and introduce a new Centrally Sponsored Scheme to provide unskilled wage employment in rural areas.

The Opposition has criticised the government over several provisions of the VB-G RAM G Act. Among such provisions are: the fund-sharing pattern (Section 22), normative allocation (Sub-section 5 of Section 4), and a pause in employment guarantee during the peak agricultural season (Section 6). These provisions will also have a fiscal implication for states, which are already facing challenges.

Departing from MGNREGA, the VB-G RAM G Act proposes a higher share of state funding for the rural job programme. As per Section 22(1) of the VB-G Ram-G Act, the fund-sharing pattern between the Centre and state governments shall be 90:10 for the 11 states, and 60:40 for all other states. Under MGNREGA, the Centre paid the entire wage bill and shared 75 per cent of the scheme’s material and administrative costs.

However, the government has not yet announced when the new scheme will be implemented. Until then, MGNREGS will continue.

Harikishan Sharma, Senior Assistant Editor at The Indian Express' National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister’s Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers’ Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled "STATE-ISTICALLY SPEAKING," which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. ... Read More

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