MGNREGA to VB-GRAM G: Reform or Retreat in Rural Employment?

BB Desk

Farooq Brazloo

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Since its enactment in 2005, the Mahatma Gandhi National Rural Employment Guarantee Act has functioned as a crucial safety net for rural India. In Jammu and Kashmir—where difficult terrain, limited industrial opportunities, and prolonged winters deepen employment insecurity—the scheme assumed even greater significance. Beyond wage support, it delivered lasting public assets: link roads in Kulgam connecting villages to highways, water-harvesting structures in Jammu’s dry zones, reclaimed wastelands in Pulwama, and irrigation canals that enhanced farm productivity. In recent years, the programme generated over 400 lakh person-days annually, helping reduce distress migration and stabilise household expenditure on food, education, and healthcare.

At the same time, structural limitations persisted. The 100-day cap often clashed with short working seasons squeezed between agricultural cycles and snowfall, leading to rushed execution and incomplete works. Field assessments in parts of J&K indicate project completion rates of barely 40 per cent. Delays in fund release and changing cost-sharing norms further weakened implementation. Recognising climate vulnerability, the Centre extended the entitlement to 150 days for calamity-affected areas in FY 2025–26, offering temporary relief to flood- and landslide-prone districts.

A major shift came with the President’s assent on December 21, 2025, to the Viksit Bharat—Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, which replaces MGNREGA nationwide. The new framework raises the annual employment guarantee to 125 days per rural household and reorients spending towards high-impact infrastructure such as water security, rural connectivity, climate resilience, and livelihood generation, anchored in Panchayat-led Viksit Gram Plans.

The government defends the transition as overdue modernization. Officials argue that while MGNREGA delivered employment, asset quality and convergence remained uneven. VB-GRAM G seeks saturation-based development by aligning village plans with flagship schemes like Jal Jeevan Mission and Pradhan Mantri Awas Yojana. Digital tools—biometric attendance, geo-tagging, and AI-based monitoring—are expected to reduce leakages and speed up payments. Flexibility around agricultural seasons and skill linkages aim to move workers toward sustainable livelihoods in horticulture, crafts, and eco-tourism.

For Jammu and Kashmir, where rural livelihoods dominate and apples and paddy underpin the economy, the scheme’s success will hinge on local customization. Works such as orchard support systems, spring rejuvenation, and snow-harvesting infrastructure could strengthen climate resilience. Importantly, the favourable 90:10 Centre–UT funding ratio continues, shielding J&K from the heavier fiscal burden borne by states.

However, concerns are difficult to dismiss. Opposition parties warn that VB-GRAM G shifts rural employment from a rights-based, demand-driven guarantee to a supply-driven, budget-capped framework. With planning tied closely to centrally defined priorities, local needs risk being subordinated. The removal of Mahatma Gandhi’s name has also triggered criticism that symbolism has been sacrificed, weakening the moral foundation of dignity of labour.

More practically, a 125-day guarantee is lower than the recently approved 150 days for calamity zones—arguably inadequate for a region with limited workable months. Heavy reliance on digital systems could marginalise remote hill communities facing connectivity and biometric challenges. Past experience also tempers optimism: despite a 100-day promise, average households often accessed only about 50 days due to implementation gaps.

The way forward lies neither in nostalgia nor blind faith in reform. VB-GRAM G addresses legitimate concerns around asset quality and convergence, but it must retain the demand-driven ethos that made MGNREGA transformative. For Jammu and Kashmir, flexibility, timely funding, and rigorous oversight will determine success. As India moves toward Viksit Bharat @2047, the measure of progress will not be new acronyms, but whether rural workers emerge more secure—or more uncertain—than before.