Centre to Rename and Reform MGNREGS Scheme

Centre Plans Renaming And Reform Of MGNREGS

Why in News ?

The Union Government is likely to introduce a Bill in the Winter Session of Parliament to rename MGNREGS as “Pujya Bapu Gramin Rozgar Yojana”, alongside proposed changes in employment days, eligibility norms, and funding structure based on expert panel recommendations.

Centre to Rename and Reform MGNREGS Scheme

Proposed Renaming And Legislative Move:

  • The Centre plans to amend the Mahatma Gandhi National Rural Employment Guarantee Act, 2005.
  • The flagship rural employment scheme may be renamed “Pujya Bapu Gramin Rozgar Yojana”, invoking Mahatma Gandhi (Bapu).
  • Senior government sources indicate that the Union Cabinet has cleared the amended Bill.
  • The Bill is expected to be introduced during the ongoing Winter Session of Parliament.
  • The original MGNREGA legislation was passed on August 25, 2005, marking a shift towards rights-based welfare.
  • The proposed renaming is part of a broader effort to restructure and recalibrate the scheme.
  • Any amendment will require Parliamentary approval, underlining legislative scrutiny.
  • The move has sparked debate on whether symbolic changes should be accompanied by substantive reforms.

Employment Guarantee And Proposed Reforms

  • MGNREGS currently guarantees 100 days of wage employment per rural household per financial year.
  • Government sources suggest a proposal to increase this guarantee to 125 days, enhancing income security.
  • Despite the legal guarantee, actual employment remains lower, with an average of 50.35 days per household over the last five years.
  • In 2022, a review panel headed by Amarjeet Sinha, former Secretary, Ministry of Rural Development, was constituted.
  • The panel focused on inter-State variations in demand, implementation, and fund utilisation.
  • The amended Bill may introduce exclusionary clauses based on State-level economic indices.
  • Such clauses could differentiate eligibility across States depending on development indicators.
  • The government is also considering tweaks in the funding pattern, affecting Centre–State fiscal sharing.

MGNREGS—Key Features And Significance

●     Legal Basis: MGNREGA, 2005 – A demand-driven, rights-based employment scheme.

●     Objective: Enhance livelihood security in rural areas through guaranteed wage employment.

●     Coverage: All rural households with adult members willing to do unskilled manual work.

●     Wages: Linked to state-notified minimum wages.

●     Implementation: Ministry of Rural Development; execution through Gram Panchayats.

●     Transparency Measures: Social audits, mandatory records, and grievance redressal.

●     Economic Role: Acts as an automatic stabiliser during agrarian distress and economic downturns.