Major Update to Rural Employment Scheme: MGNREGS Renamed

Introduction to the Updated Employment Scheme

The Union Cabinet approved a significant update to India’s foremost rural employment scheme on December 12, 2025. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) will now be known as the Poojya Bapu Grameen Rozgar Yojana. This change accompanies an increase in the number of guaranteed workdays from 100 to 125, aiming to enhance rural livelihoods and ensure income stability for millions of households reliant on the scheme.

Key Cabinet Decisions

• MGNREGS will be renamed to Poojya Bapu Grameen Rozgar Yojana (the name was previously changed from NREGS to MGNREGS in 2009).
• Guaranteed employment days will increase from 100 to 125.
• An amendment to the National Rural Employment Guarantee Act (NREGA), 2005, has been approved, with formal notification pending.

Background of the Employment Guarantee Act

The NREGA was enacted on August 25, 2005, providing a legal guarantee for 100 days of employment to adult rural households. The scheme aims to:

• Enhance rural purchasing power.
• Provide livelihood security.
• Reduce rural distress and poverty.
• Create durable community assets.

In 2009, the scheme was renamed to the Mahatma Gandhi National Rural Employment Guarantee Act/Scheme.

Significance of the Update

The recent changes hold both economic and social importance:

• They offer stronger income support to rural households.
• Provide more predictable employment, especially during off-seasons in agriculture.
• Enhance rural spending power, which can help stimulate local economies.
• Improve safety nets for low-income families.
• Reinforce the scheme’s original intent of reducing poverty and narrowing income inequality.

Conclusion

The renaming of the MGNREGS to the Poojya Bapu Grameen Rozgar Yojana and the increase in guaranteed workdays signifies a commitment to strengthening rural livelihoods in India. This update aims to provide better support and security for rural families, ultimately contributing to economic growth and poverty alleviation.

Frequently Asked Questions (FAQs)

Q1. What is the new name of MGNREGS?
Answer: The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) has been renamed to the Poojya Bapu Grameen Rozgar Yojana as of December 2025.

Q2. How many days of employment are guaranteed under the new scheme?
Answer: The number of guaranteed workdays has been increased from 100 to 125 days under the Poojya Bapu Grameen Rozgar Yojana.

Q3. What was the original purpose of MGNREGS?
Answer: The original purpose of MGNREGS was to enhance rural purchasing power, provide livelihood security, and reduce rural distress and poverty by guaranteeing employment.

Q4. When was the NREGA enacted?
Answer: The National Rural Employment Guarantee Act (NREGA) was enacted on August 25, 2005, establishing legal employment guarantees for rural households.

Q5. Why is the update significant for rural households?
Answer: The update is significant as it provides stronger income support, predictable employment, and improved safety nets for low-income families, thus reducing poverty and income inequality.

UPSC Practice MCQs

Question 1: What is the new name of the rural employment scheme previously known as MGNREGS?
A) Poojya Bapu Grameen Rozgar Yojana
B) Mahatma Gandhi Rural Employment Scheme
C) National Rural Employment Guarantee Act
D) Rural Employment Enhancement Scheme
Correct Answer: A

Question 2: How many days of guaranteed employment does the updated scheme provide?
A) 100 days
B) 125 days
C) 150 days
D) 200 days
Correct Answer: B

Question 3: What is one of the aims of the NREGA?
A) Enhance urban development
B) Create durable community assets
C) Promote industrial growth
D) Increase corporate taxation
Correct Answer: B

Question 4: When was the NREGA renamed to MGNREGS?
A) 2005
B) 2007
C) 2009
D) 2011
Correct Answer: C

Question 5: What is the primary goal of the Poojya Bapu Grameen Rozgar Yojana?
A) Reduce urban unemployment
B) Enhance rural livelihoods
C) Increase agricultural exports
D) Promote international trade
Correct Answer: B