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New Act Replaces MGNREGA: Critics Doubt Its Effectiveness

1/17/2026

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Story summary
  • The Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (Gramin) Act 2025 replaces the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
  • The new act caps expenditure and decentralizes fiscal responsibility.
  • MGNREGA had weakened due to fund-release delays and a focus on asset creation.
  • Critics question whether the redesign can preserve MGNREGA's stabilizing role during downturns.