MGNREGA Repealed from 1 July 2026: VB-G RAM G Act Takes Over
Why in the news
The Centre has announced that MGNREGA’s rules, notifications, schemes, orders and guidelines end on 1 July 2026, when the new VB-G RAM G Act begins. The replacement law was passed by Parliament in 2025.
Key facts
- Date of change: 1 July 2026.
- New law: Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, short name VB-G RAM G.
- Process concern: passed without pre-legislative consultation; civil society and unions objected.
- MGNREGA scale: about 15 crore active job-card holders; around 6 crore households worked in FY24.
- Core promise of MGNREGA: 100 days of guaranteed wage employment per rural household each year.
About MGNREGA, 2005
- Originally NREGA; renamed in 2009. Came into effect in February 2006 in 200 districts and reached all rural districts by April 2008.
- Guarantees at least 100 days of unskilled manual wage work a year to rural households whose adult members volunteer.
- Work is to be given within 15 days of demand, otherwise an unemployment allowance is due.
- Wages go through bank or post-office accounts (DBT); social audit through Gram Sabhas is compulsory; one-third of beneficiaries must be women.
- Focus on durable assets such as water conservation, drought-proofing and rural roads.
- Implementation: Ministry of Rural Development (Centre), State governments and Gram Panchayats.
- Constitutional link: Article 41 (right to work) and Article 39(a) in the Directive Principles.
Concerns raised
- No pre-legislative consultation, although the 2014 policy expects draft Bills to be published for at least 30 days (it is non-binding).
- Possible dilution of the rights-based, demand-driven design.
- Unclear continuity for beneficiaries, ongoing works and wage payments; transition guidelines are expected from the Ministry of Rural Development.
Significance and criticism of MGNREGA
| Credited with | Criticised for |
|---|---|
| Cutting rural poverty and raising rural wages | Delayed wage payments |
| Smoothing consumption in distress, empowering women | Corruption and ghost beneficiaries |
| Building rural infrastructure | Weak asset quality and leakages despite DBT |
| Buffering demand during COVID-19 | Budget cuts in recent years |
Exam angle
- Nodal ministry: Rural Development.
- Law replacing MGNREGA: VB-G RAM G Act, effective 1 July 2026.
- Related terms: rights-based welfare, pre-legislative consultation policy (2014), Viksit Bharat vision for 2047, Gram Sabha.