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Draft Bill proposes MGNREGA name change; states' share in GRAM G funding may soar to 40%
Business Standard
|December 16, 2025
“But under the VB-G RAM GBill, Section 5(1) states the State Government shall, in such rural areas in the State as notified by the Central Government, provide to every household whose adult members volunteer to do unskilled manual work, not less than 125 days of guaranteed employment.
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Therefore, if a rural area is not notified by the Centre, there is no right to work for the people of that area, effectively reducing universally guaranteed employment to any other scheme run at the mercy of the Union Government,” the NREGA Sangharsh Morcha added.
The draft Bill said the state governments would notify in advance a total of 60 days (may not be continuous) in a financial year, covering the peak agricultural seasons of sowing and harvesting, during which works under this new Act would not be undertaken.
Defending the changes, an FAQ (frequently asked questions) circulated by the government on the draft said that “the scheme had been transformed into a central-sector one from a centrally sponsored scheme because rural employment was inherently local and states would have to share costs and responsibilities. It will also be better incentivised to prevent misuse and ensure that development plans are tailored to meet regional conditions through gram panchayat plans. The Centre retains the standards while states execute plans with accountability and this partnership model improves efficiency and reduces misuse”.
On the 60-day “no-work period” during the peak farming season, the FAQ said it would ensure labour availability during sowing or harvest; prevent sharp wage increases, which raise food prices; and ensure that workers naturally shifted to agriculture, which paid higher seasonal wages. “60 days is aggregated, not continuous while workers still get 125 guaranteed days in the remaining %300 days. Thus farmers and labourers both benefit,” the FAQ said.
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