As the Centre moves to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), states are still owed over Rs 9,700 crore under it. Data presented by the Centre in Parliament also shows that while it is guaranteeing 125 days of employment a year under the new framework, the all-India average for 2024-25 was barely over 50.
The bill to replace the MGNREGA framework with Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen), or VB-G RAM G, has been introduced in Parliament. The government says the new law aligns rural employment with the vision of Viksit Bharat 2047.
According to government data, as of December 5, 2025, total pending liabilities under MGNREGA stood at Rs 9,746.39 crore. This includes Rs 1,340.07 crore under the wage component, Rs 7,863.37 crore under the material component, and Rs 542.95 crore under administrative expenses. The total allocation for MGNREGA in the current financial year (FY 2025-26) is Rs 86,000 crore. The government has said fund releases and pending dues are dynamic and change on a daily basis.
Beyond delayed payments, the implementation of the scheme continues to fall short of its core legal guarantee of 100 days of employment per rural household. Data presented in Parliament shows that in 2024-25, the all-India average employment generated was 50.24 days, down from 52.07 days in 2023-24.
MGNREGA is currently operational across 34 states and Union Territories, and Mizoram recorded the highest average employment at 95.62 days, while West Bengal reported zero workdays under the scheme in 2024-25. The Centre has attributed this to administrative non-compliance by the state.
According to the government, the labour budget for West Bengal for FY 2021-22 was not approved by the Empowered Committee of the Department of Rural Development due to repeated violations of departmental directives. As a result, the release of funds to the state was stopped with effect from 9 March 2022. Pending liabilities for West Bengal as of 8 March 2022 stand at Rs 1,457.22 crore under wages and Rs 1,607.68 crore under the material component.
Across most states, households are receiving close to 50 days of employment.
Launched in 2005 by the UPA government, MGNREGA has been one of India's largest social security programmes, providing a legal right to work and acting as a crucial safety net for rural households over the past two decades.
The newly introduced VB-G RAM G Bill proposes to increase the guaranteed employment from 100 to 125 days. It also promises faster wage payments, with disbursals to be made within 7 to 15 days of completion of work, failing which workers would be entitled to compensation for delays.
