MGNREGA – Congress Marks 20 Years, Questions Centre’s Replacement Scheme
MGNREGA – The Congress on Monday mounted a sharp critique of the Centre’s decision to replace the Mahatma Gandhi National Rural Employment Guarantee Act, describing the original programme as a landmark social reform and the new framework as a step backward. The comments came on the 20th anniversary of the launch of MGNREGA, a law the party says reshaped rural employment and governance across India.
A milestone rooted in rural India
Congress general secretary for communications Jairam Ramesh recalled that MGNREGA was formally launched exactly two decades ago in Badnapalli village of Andhra Pradesh’s Anantapur district. He said the law was designed as a response to chronic rural distress and unemployment, particularly in drought-prone regions.
According to Ramesh, the scheme has generated nearly 180 crore person-days of employment over the years, with women forming a substantial share of beneficiaries. He added that the programme led to the creation of an estimated 10 crore community assets, ranging from water conservation structures to rural connectivity projects, while also helping reduce distress-driven migration.
Empowerment through local institutions
The Congress leader highlighted that MGNREGA strengthened grassroots democracy by placing planning authority with gram panchayats. Projects were selected locally based on village needs, ensuring that public works aligned with community priorities. He noted that the cost-sharing model encouraged states to implement projects without excessive financial strain, as the Centre bore the bulk of expenditure.
Ramesh also pointed to the programme’s role in advancing transparency and accountability. Mandatory social audits conducted through gram sabhas and periodic reviews by the Comptroller and Auditor General, he said, helped curb irregularities and ensured public oversight.
Direct benefits and farmer support
Another significant reform introduced under MGNREGA was the direct benefit transfer system, which ensured wages were credited directly into bank or post office accounts. This reduced delays and leakages, while also bringing millions of rural workers into the formal financial system.
Ramesh added that small and marginal farmers benefited from the ability to build assets such as irrigation wells on their own land, improving agricultural productivity and long-term income security.
From legal right to administrative control
At the heart of the Congress’s criticism is the argument that MGNREGA was a demand-driven legal entitlement rather than a discretionary welfare scheme. Ramesh said the law drew its legitimacy from constitutional principles, guaranteeing work when demanded by rural households anywhere in the country.
In contrast, he alleged that the new framework shifts decision-making power to the Centre. Under the revised system, employment opportunities would be notified selectively in certain districts, depending on budget allocations rather than worker demand. He warned that this could undermine the bargaining power of labourers, especially during peak agricultural seasons.
Concerns over centralisation and costs
Ramesh further claimed that the revised law sidelines panchayats by transferring project selection to New Delhi. He also expressed concern over changes in funding patterns, saying states would now be required to shoulder a larger share of costs despite existing fiscal pressures. This, he argued, could discourage states from offering work consistently.
The Congress leader described the replacement of MGNREGA as a dilution of a rights-based framework, calling the original law transformative and the new approach structurally flawed.
The law that replaced MGNREGA
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 received parliamentary approval amid strong opposition protests and was granted presidential assent in December last year. The legislation officially replaced MGNREGA after two decades.
While the new law increases the annual employment guarantee from 100 to 125 days per rural household on paper, it also introduces changes to planning, funding, and implementation mechanisms. Opposition parties argue these revisions weaken the legal assurance of work and concentrate authority at the Centre.
As the debate continues, MGNREGA’s legacy remains central to discussions on rural employment, federal balance, and the future of social protection in India.