'MGNREGA was for different rural economy': Amitabh Kant defends Viksit Bharat-G RAM G

Former NITI Aayog CEO Amitabh Kant on Wednesday defended the Centre's decision to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), arguing that the new Viksit Bharat-G RAM G Act, 2025, is not a dilution of social protection but an evidence-based update that aligns with rural India’s changing realities.

Kant stressed that MGNREGA, which was enacted in 2005, was designed for a very different rural economy. "Nearly two decades later, Parliament has replaced it with the Viksit Bharat - G RAM G Act, 2025, reflecting how rural India, labour markets, and governance capacity have structurally changed," he said.

The new law, Kant explained, reflects the transformation in rural infrastructure, including electrification, roads, digital payments, direct benefit transfers (DBT), and more diversified livelihoods.

These changes, he noted, require a wage-employment law designed for a low-capacity, cash-based system to be updated in order to remain effective. "MGNREGA was enacted for a very different rural economy," Kant said, adding that the new law adapts to today’s needs by focusing on productive rural employment, with an emphasis on durable assets, water security, climate resilience, and livelihood infrastructure.

The shift from MGNREGA's focus on relief to the Viksit Bharat-G RAM G Act's emphasis on productive employment is in line with the government's goals to enhance rural development, he said. "The statutory guarantee has been strengthened from 100 to 125 days, while improved digital monitoring, faster payments and clearer accountability reflect higher governance capacity."

Kant also pointed to evidence that exposed the limitations of the MGNREGA design. "CAG audits and independent studies showed that MGNREGA utilisation was often lowest in the poorest states and districts, while relatively better-off states absorbed a larger share of funds," he stated, adding that the self-targeting assumption, which was central to MGNREGA's design, weakened over time.

The former bureaucrat stressed that this transition should not be seen as a weakening of social protections but as a necessary step to align rural employment with the evolving needs of India’s rural economy. "This is not dilution of social protection," he concluded, "but an evidence-based update of a 2005 law, aligning rural employment with productivity, accountability, and today’s rural realities."

Opposition protests against the new bill

The opposition has opposed the Viksit Bharat-G RAM G Bill. Congress leader Rahul Gandhi criticised the bill, calling it "anti-state and anti-village by design" and accusing the government of turning the rural employment guarantee into a rationed scheme controlled from Delhi. He further claimed that the new law demolishes the rights-based, demand-driven guarantee that MGNREGA once provided.

The Viksit Bharat-G RAM G Bill, which President Droupadi Murmu has now given assent to, replaces MGNREGA and enhances the statutory wage employment guarantee to 125 days per financial year for rural households. The Bill aims to improve rural employment by linking wage work to long-term infrastructure projects and integrating governance enhancements like faster payments and stronger accountability.

Under the new system, the financial responsibility for the program will be shared between the Centre and state governments. For the northeastern and Himalayan states, the Centre will contribute 90% of the costs, while for other states and Union Territories, the proportion will be 60% from the Centre and 40% from the states. Unlike MGNREGA, which was demand-driven, the new law allocates normative funding to states, with any excess expenses to be borne by the states.