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MGNREGA was transformative law, its substitute a flaw: Jairam Ramesh
The Congress party has strongly criticized the Modi government's new employment scheme. They argue it replaces the successful MGNREGA law with a flawed system. The new law centralizes power and shifts financial burdens to states. This move is seen as a significant blow to rural employment guarantees and workers' bargaining power. The party highlights MGNREGA's achievements over two decades.
New Delhi: Hitting out at the Modi government, the Congress on Monday said MGNREGA was a transformative law while the new scheme brought by the Centre that "bulldozed it away" is a "flaw".
Budget 2026 Critics' choice rather than crowd-pleaser, Aiyar says Sitharaman's Paisa Vasool Budget banks on what money can do for you best Budget's clear signal to global investors: India means business Congress general secretary in-charge communications Jairam Ramesh said exactly 20 years ago today, the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) was launched at Badnapalli village in Anantapur district of Andhra Pradesh.
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"Over the years, it has provided 180 crore days of work to rural households (especially women), created an estimated 10 crore community assets, significantly reduced distress migration, empowered gram panchayats, and decisively increased the bargaining power of the rural poor for higher wages," Ramesh said on X.
It also launched the direct benefit transfer initiative to credit wages directly into bank and post office accounts, he said.
Individual small and marginal farmers were able to establish irrigation facilities like digging wells on their own lands, the Congress leader said.
MGNREGA was a demand-based legal guarantee and not just an administrative promise, Ramesh asserted.
"It was a right derived from Article 41 of the Constitution. Work was allocated when demanded by citizens and was made available anywhere in rural India. Projects were decided upon by the local Gram Panchayat, and the State Government having to pay only 10% of the overall costs was incentivised to provide work without having to bear significant costs," he said.
Social audits through the Gram Sabha and high-level audits through the CAG were conducted regularly, Ramesh pointed out.
He further claimed that Modi Government's new law guarantees only centralisation in New Delhi.
Work will now be notified in certain districts by the Modi government, he added.
"Work will be provided based on the Government's allocated budget rather than on citizen demand. The scheme will stop altogether for two months every year during peak agricultural activities - a big blow to workers' bargaining power who won't be able to negotiate better wages for agricultural work," Ramesh said.
The panchayat has been sidelined, and projects will be determined by the Modi government according to its priorities, he said.
Finally, states will now have to bear 40% of the costs given their financial stress, they will not be able to do so and will stop providing work altogether, he opined.
"MGNREGA was a transformative law. The Modi government's new scheme that bulldozed it away is a flaw," Ramesh said.
Ramesh also shared a photo from 20 years ago when Cheemala Pedakka, a Dalit woman from Badnapalli, became the first job card holder under MGNREGA.
The Union government's Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 (VB-G RAM G), was passed by both houses amid opposition uproar and received presidential assent in December 2025, effectively replacing MGNREGA after two decades.
Under the new law, the statutory guarantee of employment was increased on paper from 100 to 125 days per rural household each year, and changes were made in funding patterns, planning mechanisms and implementation structures.
Opposition parties have argued the new law dilutes the rights-based nature of MGNREGA, increases centralisation of power, and saddles states with greater financial responsibilities, potentially weakening the original legal entitlement to work.
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Source: EconomicTimes
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