Prime Minister Narendra Modi’s government has renamed the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), a flagship welfare programme introduced by the previous UPA government, as the Pujya Bapu Rural Employment Guarantee Bill, 2025, a move that has received approval from the Union Cabinet. The decision has drawn sharp criticism from the Congress and other opposition parties, who argue that the Modi government is merely rebranding UPA-era schemes and claiming them as its own. Notably, the BJP had earlier described MNREGA as a symbol of the Congress party’s policy failures. In a democratic system, the opposition is entitled to question and criticise government decisions. However, renaming MNREGA after Pujya Bapu does not alter the scheme’s core philosophy or objectives. The use of the term “Pujya Bapu” instead of “Mahatma Gandhi” is presented as an alternative way of paying tribute to Gandhi’s ideals and legacy.
Beyond the change in nomenclature, the central government has also strengthened the programme. The annual guarantee of employment has been increased from 100 to 125 days, and the daily wage rate has been revised to ₹240. These enhancements are expected to further reinforce income security for rural households.
This scheme was launched in 2005 during the tenure of Prime Minister Dr. Manmohan Singh. It has been the world’s largest social security and public works program. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was also a major political success for him, as it legalized the right to employment in rural India and earned the trust of the poor. The MGNREGA scheme is also credited with the United Progressive Alliance (UPA) government’s return to power for a second term under Dr. Manmohan Singh’s leadership. Dr. Manmohan Singh’s political style was scholarly and restrained, but the MGNREGA, the Food Security Act, and reforms in financial policies were among his major achievements. Social security systems in countries around the world are constantly evolving. The key is to see which schemes provide protection against hunger to the vulnerable sections of the population. In this respect, MGNREGA has written a success story in India. This scheme provides a legal guarantee of minimum employment to rural households.
Under this scheme, any person above 18 years of age can apply for work. The work undertaken under this scheme includes the construction of roads, ponds, canals, field embankments, and water conservation projects. Wages are paid directly into bank or post office accounts. If work is not provided within 15 days, an unemployment allowance is given. At least one-third participation of women is mandatory under the scheme. Between the financial years 2014-15 and 2024-25, 3029 crore person-days of work were generated under this scheme, representing an 82 percent increase compared to the previous decade. Women’s participation is continuously increasing. The income of rural people is also increasing. More than 68,000 Amrit Sarovars (water bodies) have been constructed across the country. There has also been an increase in the creation of individual assets. MGNREGA has brought about social and economic transformation in the lives of rural people, leading to a reduction in migration to cities. This scheme has proven to be a completely indigenous and innovative experiment. Institutions like the United Nations and the World Bank have also praised this scheme.
In developed countries, an unemployed man or woman registers at an employment office and receives unemployment benefits while searching for a job. Such a system does not exist in India because the labor market is not organized. Instead, we have schemes like MGNREGA, which covers the rural population. Under this scheme, the demand for work increases significantly during droughts and famines. Conversely, the demand for work decreases when the labor market improves and the demand for labor in the agricultural sector increases. A decrease in the demand for employment under this scheme is a positive sign. If this scheme becomes unnecessary, it would mean that there is no longer a shortage of employment in rural India. However, neither of these situations currently prevails. During the COVID-19 pandemic, the demand for work under MGNREGA increased dramatically. In 2020-21, government spending on this scheme more than doubled its budgetary allocation, reaching approximately ₹1.2 lakh crore.
In some states, MGNREGA is used for construction projects other than rural housing. This allows villagers to find work close to their homes. Initially, there were complaints of fraud in this scheme, but the central government’s measures, such as linking worker payments to Aadhaar and implementing biometric verification, have curbed these malpractices. MGNREGA is essentially a combination of public works programs, pilot projects, and multi-purpose projects. In Maharashtra, the Employment Guarantee Scheme was launched in 1973 against the backdrop of several years of severe drought. That was a state government-funded scheme, and it was quite successful. Although the Modi government is running free ration programs, PM Kisan, and direct benefit transfer schemes for girls, the utility of employment programs in rural India remains. The Modi government has taken a positive step by increasing the number of workdays and wages under this scheme. This will greatly benefit rural India. It will allow for greater focus on community participation and public involvement to transform the landscape of rural India.
