Centre decided to modify MGNREGA after receiving repeated complaints: Chouhan

The work to overhaul India’s rural employment scheme was taken up over a year ago to fix a host of issues including “mismanagement and leakages” and states will be given six months to transition from MGNREGA to VB-G RAM G, Union Rural Development Minister Shivraj Singh Chouhan said on Tuesday.

- SANJEEB MUKHERJEE

“We had taken several measures to remove irregularities in MGNREGA but despite that several things were coming to our notice. Also when we wanted to increase the number of guaranteed workdays from 100 to 125 we worried about what role such a large expenditure could play in building developed villages,” Chauhan told a group of reporters, adding that the Centre plans to roll out the new scheme from April 1, 2026 across India.

He tabled the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (GRAMIN) Bill, 2025 (VB—G RaM G) in Lok Sabha on Tuesday.

While addressing the concerns surrounding the states as their revenue collections have been rising due to higher goods and services tax (GST) collections and they too will become participants in developing rural India.

The funding pattern under the proposed VB-G RaM G scheme has been tweaked to 60:40 from the current 90:10 under the Mahatma Gandhi National Rural Employment Guarantee (MGNREGA).

“Also, it must be remembered that the Centre too is sharing a higher burden from ₹86,000 crore to almost ₹96,000 crore now,” Chouhan said.