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MGNREGA provides legal guarantee of 100 days wage employment per year to rural households. World largest employment guarantee programme. BEING TRANSITIONED: Budget 2026-27 announced G-RAM-G (Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin) as successor scheme with 125 days guarantee and ₹95,692 crore budget. MGNREGA continues with ₹30,000 crore in FY2026-27 during transition. Effective April 1, 2026: G-RAM-G becomes primary rural employment scheme.
Target Beneficiaries: 12.15 crore active workers; 99.81% rural households offered employment in FY2025-26; women constitute over 59% of total person-days
86000
Funding Ratio (Centre:State): 100% Central (Unskilled Wages), 75% Central (Material and Skilled Wages)
GS Paper: GS2
Syllabus Tags
Enacted in 2005 to address rural distress. It was the first act globally to provide a legal guarantee for work.
Skill upgrading for MGNREGA workers
Metric
280+ Crore
Source: MoRD Dashboard
Metric
59%
Source: PIB
MGNREGA acts as a critical social safety net and an automatic stabilizer for the rural economy. However, it is plagued by paradoxical issues: 'demand-driven' in theory but 'supply-constrained' by budget allocations. The transition to G-RAM-G signifies an attempt to shift from simple labor to 'productive asset creation' and 'livelihood diversification.' The major friction point remains the Aadhaar-Based Payment System (ABPS) which, while reducing leakages, has led to exclusion of marginalized workers in digitally-dark areas.
Critically examine whether MGNREGA has transitioned from a poverty alleviation scheme to a sustainable asset creation program.
Key themes: 1. Right to Work as a derivative of Article 21. 2. Role in reducing rural-urban migration. 3. Women empowerment (33% reservation, usually >50% participation). 4. Climate resilience through 'Natural Resource Management' (NRM) works. Use it to discuss 'Universal Basic Income' vs 'Employment Guarantee'.