Cabinet decision and overview
Poojya Bapu Grameen Rozgar Yojana: The Union Cabinet approved a major reform to India’s flagship rural employment programme on 12 December 2025. The Mahatma Gandhi National Rural Employment Guarantee Scheme will be renamed as Poojya Bapu Grameen Rozgar Yojana. Along with the renaming, the legally guaranteed employment will rise from 100 to 125 days per rural household.
This decision seeks to strengthen rural income security and provide better livelihood assurance. The Cabinet has also cleared an amendment to the National Rural Employment Guarantee Act, 2005. A formal government notification is awaited to operationalise the changes.
Renaming of the scheme
The renaming represents a symbolic and policy shift in India’s rural employment framework. The scheme was originally launched as NREGS and later renamed MGNREGS in 2009. The latest name, Poojya Bapu Grameen Rozgar Yojana, emphasises national ideals while retaining the scheme’s core welfare objective.
Static GK fact: The scheme is one of the world’s largest rights-based employment programmes, providing statutory work entitlement to rural households.
Increase in guaranteed employment days
The increase from 100 to 125 days is a significant structural reform. It expands the legal safety net available to rural workers, especially landless labourers and marginal farmers. The additional days are expected to support households during agricultural off-seasons and periods of climate-related distress.
Despite a 100-day guarantee, the average actual employment in 2024–25 was only 50.24 days. The enhanced limit aims to bridge this gap and improve actual utilisation of the scheme.
Objectives of the original Act
The NREGA, 2005 was enacted to address chronic rural unemployment and income insecurity. It guarantees wage employment to adult members of rural households willing to do unskilled manual work.
The core objectives include poverty reduction, creation of durable rural assets, and strengthening grassroots livelihoods. Employment is demand-driven, making the scheme distinct from discretionary welfare programmes.
Static GK Tip: Employment under the Act must be provided within 15 days of demand, failing which unemployment allowance is payable.
Economic and social significance
The expanded job guarantee is expected to enhance rural purchasing power and stimulate local economies. Increased wages can lead to higher consumption, benefiting village-level markets and services.
Socially, the scheme acts as a stabilising force for vulnerable households. It provides a predictable income stream, reduces seasonal migration, and supports women’s workforce participation.
The reform also reinforces the scheme’s founding vision of reducing income inequality and strengthening rural resilience.
Administrative framework
The programme continues to be implemented by the Ministry of Rural Development in partnership with state governments. States are responsible for worksite planning, wage payments, and asset creation under the statutory framework.
Static GK fact: At least one-third of total beneficiaries under the scheme must be women, as mandated by the Act.
Static Usthadian Current Affairs Table
Poojya Bapu Grameen Rozgar Yojana:
| Topic | Detail |
| Original legislation | National Rural Employment Guarantee Act, 2005 |
| First renaming | MGNREGA in 2009 |
| Latest scheme name | Poojya Bapu Grameen Rozgar Yojana |
| Guaranteed workdays | Increased from 100 to 125 days |
| Cabinet approval date | 12 December 2025 |
| Average employment | 50.24 days in 2024–25 |
| Implementing ministry | Ministry of Rural Development |
