Source: The post “The bulldozed demolition of MGNREGA’’ has been created, based on “The bulldozed demolition of MGNREGA” published in “The Hindu” on 22 December 2025. The bulldozed demolition of MGNREGA.
UPSC Syllabus: GS Paper-2-Governance
Context: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), enacted in 2005, is a landmark rights-based legislation derived from Article 41 of the Constitution of India. It guarantees wage employment to rural households and has functioned as a critical pillar of social security, poverty alleviation, and decentralised governance in rural India.
Importance of MGNREGA
- MGNREGA has played a transformative role in rural India. It has provided income security to crores of households, increased rural wage levels, reduced seasonal migration, and strengthened the bargaining power of landless labourers.
- The scheme has empowered Gram Panchayats and institutionalised transparency through social audits. During the COVID-19 pandemic, MGNREGA acted as a lifeline for the rural poor.
Key Changes and Their Implications
- Dilution of the Right to Work: The new law removes the legal guarantee of employment and converts MGNREGA into a discretionary scheme. Employment is no longer demand-driven, which undermines the very foundation of the right to work.
- Budgetary Capping of Employment: The earlier uncapped funding system has been replaced with pre-determined budgetary allocations. This limits the number of workdays provided and makes employment dependent on Union government priorities rather than rural distress.
- Restriction on Year-Round Employment: The imposition of mandatory non-working days during peak agricultural seasons reduces employment availability. This weakens the wage bargaining power of workers and may suppress rural wage growth.
- Increased Financial Burden on States: The cost-sharing ratio has been altered from 90:10 to 60:40, with States bearing all additional expenditure beyond central allocations. This discourages States from generating employment and strains their finances.
- Centralisation and Weakening of Local Governance: The replacement of Gram Sabha-led planning with centrally designed frameworks undermines the 73rd Constitutional Amendment. It erodes local self-governance and ignores region-specific needs.
- Misleading Claims of Increased Employment Days: Although an increase from 100 to 125 days is claimed, structural constraints make this unachievable in practice. Past trends of delayed payments and stagnant budgets further weaken credibility.
- Constitutional and Democratic Concerns: The weakening of MGNREGA reflects a broader erosion of rights-based legislation in India. Similar dilution has occurred in the Right to Information, Right to Education, Forest Rights Act, and land acquisition laws. This trend raises serious concerns about constitutional morality and the rights-based vision of governance.
Way Forward
- The legal guarantee of employment must be restored to reaffirm the constitutional right to work.
- Central funding should remain demand-driven and uncapped to ensure timely and adequate employment.
- The cost-sharing ratio should be revised in favour of States to encourage active implementation.
- Year-round employment should be ensured, especially during periods of agrarian distress.
- Gram Sabhas must be reinstated as the primary planning and implementation authorities in line with the 73rd Constitutional Amendment.
- Wage payments should be made timely, and technological systems should be simplified to prevent worker exclusion.
- Regular social audits and parliamentary oversight must be strengthened to ensure transparency and accountability.
Conclusion: MGNREGA represents the constitutional commitment to social justice, dignity of labour, and inclusive growth. Its dilution threatens rural livelihoods and democratic decentralisation. Strengthening and protecting MGNREGA is essential for safeguarding India’s constitutional values and ensuring equitable development.
Question: MGNREGA has been one of the most important rights-based social security legislations in India. Critically examine the recent changes to the scheme and suggest a way forward.
