Economic Survey Backs Scrapping MGNREGA in Favor of Viksit Bharat Rural Jobs Act
The Economic Survey 2025-26 defends the government's decision to replace the MGNREGA with the Viksit Bharat Guarantee for Rozgar and AJEEVIKA Mission (Gram) Act, 2025. The Survey argues that MGNREGA suffered from 'deep structural issues' and that a strong rural economy has reduced dependence on the scheme. Demand for work fell from a pandemic peak of 389.09 crore person-days to 183.77 crore in 2025-26. The new legislation is described as a 'comprehensive legislative reset' designed to address previous shortcomings and align with current rural realities, including rising non-farm employment and improved rural infrastructure.
Key Points
- MGNREGA is being replaced by the Viksit Bharat Guarantee for Rozgar and AJEEVIKA Mission (Gram) Act, 2025.
- The Survey cites a 53% drop in demand for MGNREGA work since the pandemic peak.
- Structural issues like mismatch between expenditure and physical progress were highlighted.
- Rural unemployment fell from 3.3% in 2020-21 to 2.5% in 2023-24.
- Women's participation in rural work rose from 48% in 2013-14 to 58.1% in 2024-25.
Exam Facts
- New Act: Viksit Bharat Guarantee for Rozgar and AJEEVIKA Mission (Gram) Act, 2025.
- Rural unemployment rate (2023-24): 2.5%.
- Person-days drop: 389.09 cr to 183.77 cr.
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