Government may rename MGNREGS as ‘Pujya Bapu Gramin Rozgar Yojana’
No formal announcement yet, but the Bill may raise guaranteed workdays to 125 and improve fund use in poorer states.
The government is likely to introduce a Bill during the ongoing Winter Session of Parliament to amend the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), including a proposal to rename the flagship rural jobs programme as the “Pujya Bapu Gramin Rozgar Yojana,” according to senior government sources.
The amended legislation, sources said, was cleared by the Union Cabinet at its meeting held on Friday, December 12, 2025. However, there was no official announcement on the proposal during the Cabinet briefing addressed by Union Minister Ashwini Vaishnaw, keeping the development largely under wraps for now.
MGNREGA, one of India’s most ambitious social welfare programmes, was originally enacted as the National Rural Employment Guarantee Act when Parliament passed the law on August 25, 2005. The scheme was later renamed the Mahatma Gandhi National Rural Employment Guarantee Act in 2009, adding the name of the Father of the Nation to underline its focus on dignity of labour and rural self-reliance. The proposed new name, “Pujya Bapu Gramin Rozgar Yojana,” continues that symbolic association with Mahatma Gandhi while aligning with the government’s preference for Hindi nomenclature.
Beyond the name change, the proposed amendments are expected to introduce substantive policy shifts. One of the most significant changes under consideration is an increase in the guaranteed number of employment days. Currently, the scheme assures up to 100 days of wage employment in a financial year for every rural household whose adult members are willing to do unskilled manual work. According to sources familiar with the discussions, the government plans to raise this ceiling to 125 days, a move that could provide additional income security to millions of rural families.
Since its inception, MGNREGA has served as a crucial safety net for rural households, particularly during periods of economic distress. The programme gained renewed importance during the COVID-19 pandemic, when reverse migration and job losses in urban areas pushed millions of workers back to villages. Any increase in guaranteed workdays would be seen as a significant boost for rural livelihoods at a time when inflation and uneven economic recovery continue to affect household finances.
The proposed amendments also follow an extensive review process. In 2022, the government constituted a panel headed by former Union Rural Development Secretary Amarjeet Sinha to examine the functioning of MGNREGA. The panel was tasked with studying inter-State variations in the implementation of the scheme, especially the paradoxical trend of lower expenditure in States with higher poverty levels.
States such as Bihar, which have relatively high poverty rates and a large rural workforce, were found to be spending less under MGNREGA compared to economically better-off States like Tamil Nadu. This imbalance raised questions about fund utilisation, administrative capacity, and demand registration mechanisms across States. The panel’s findings reportedly influenced the government’s thinking on the need for structural tweaks rather than merely increasing budgetary allocations.
Sources indicated that the amended Bill may introduce changes aimed at improving utilisation of funds, particularly in economically weaker States. These could include measures to better assess demand for work, streamline approvals for projects, and reduce delays in wage payments — a long-standing grievance among MGNREGA workers.
Another area likely to see changes is the funding pattern. At present, the Centre bears 100% of the wage component of the scheme, while States share part of the cost for materials and administrative expenses. The government is said to be examining whether adjustments are needed to ensure more efficient spending and greater accountability, though officials stressed that the core principle of central support for rural wages would remain intact.
Politically, the proposed renaming and expansion of the scheme could spark debate. Supporters may argue that increasing guaranteed workdays demonstrates the government’s commitment to rural welfare and employment generation. Critics, however, could view the name change as symbolic politics and question whether implementation challenges — such as delayed payments and uneven access — are being adequately addressed.
For millions of rural workers, the focus remains less on what the scheme is called and more on how effectively it functions. MGNREGA has often been described as a lifeline for the poorest households, offering not just income but also a sense of dignity through assured work. Any enhancement in employment days, if backed by timely payments and smoother administration, could have a tangible impact on rural consumption and economic stability.
As Parliament prepares to take up the proposed Bill, all eyes will be on the fine print of the amendments. Whether the changes deliver meaningful improvements on the ground or remain largely symbolic will ultimately determine how the revamped “Pujya Bapu Gramin Rozgar Yojana” is judged by the people it is meant to serve.