Relevance: GS Paper 2 (Welfare Schemes) & GS Paper 3 (Indian Economy) | Source: The Hindu

For nearly twenty years, the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was the biggest safety net for India’s poor. In December 2025, the government passed a new law to replace it: the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025.

Here is a simple breakdown of the current crisis happening during this major change.

1. The Big Promise vs. The Ground Reality

• The Government’s Promise: The Central Government promised that until the new system is fully ready, the old MGNREGA work would continue normally so that poor workers do not suffer.
• The Sad Reality: In states like Bihar and Rajasthan, thousands of daily wage workers are protesting. They are being completely denied work, leaving them without any income.

2. Why are Workers Being Denied Jobs? (The Confusion)

This is a classic example of how good policies fail at the local village level.

• No Written Orders: Officials in Delhi say the old scheme is still running. However, local village officers (Panchayats) claim they got “informal” phone calls to stop giving new work.
• Fear of Spending: Because there are no clear, official written letters from the top, local officers are scared to spend money. To be safe, they are simply sending poor workers back home empty-handed.

3. The Heavy Cost on the Poor 

• Breaking the Law: Getting work under these schemes is a legal right. If the government cannot give work within 15 days of asking, they must legally pay an Unemployment Allowance. This rule is currently being broken.
• Massive Income Loss: 100 days of work gives a poor family about ₹25,000 to ₹28,000 a year. Suddenly stopping this pushes vulnerable families straight into extreme poverty and hunger.
• Hurting Women the Most: These protests are mostly led by rural women. For many of them, this daily wage is their only source of financial independence and respect in the household.

4. Old Problems Making Things Worse

Even before this new law, the system had major flaws:

• Technology Failures: The government made it compulsory to link Aadhaar cards and mark attendance using a mobile app with GPS (National Mobile Medical Software). Poor internet and tech errors have wrongly deleted millions of genuine workers from the system.
• Delayed Money: Poor workers often wait months to get paid.
• Funding Tensions: The new 2025 Act asks State governments to pay a larger share of the costs (a 60:40 ratio). Poorer states are struggling to find this extra money.

One Line Wrap (/Conclusion)

Passing a new, ambitious welfare law is meaningless if its poor implementation pushes the most vulnerable citizens into hunger and joblessness.

“The transition to the new Viksit Bharat-Guarantee for Rozgar Act highlights the deep administrative and technological gaps in India’s rural welfare delivery.” Discuss. (15 Marks, 250 Words)

Mains Answer hint:

• Intro: Mention the change from MGNREGA to the new 2025 Act and the ongoing protests by rural workers due to job denials.
• Body: * Administrative gap: Explain the confusion between the Centre and local Panchayats due to a lack of written orders, which violates the legal right to an Unemployment Allowance.
  • Technological gap: Discuss how mandatory apps and Aadhaar linking exclude poor workers. Mention the burden on women.
• Conclusion: Conclude that the government must ensure a smooth, compassionate transition without forcing illiterate workers to suffer through technical and bureaucratic confusion.