The Indian government has notified the implementation of the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), 2025, a new rural employment law that replaces the nearly two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
The new law, which takes effect nationwide from July 1, guarantees every eligible rural household up to 125 days of paid unskilled manual work in a financial year, an increase of 25 days from the previous law.
Under the new funding model, the Central government will determine a state-wise normative allocation, a fixed spending ceiling, for each financial year. Any expenditure beyond this ceiling must be borne by the state.
The law does not define the parameters for fixing these ceilings, stating the Central government will specify them later through rules.
The total annual outlay is estimated at approximately ₹1.51 lakh crore, with the Centre's share projected at roughly ₹95,700 crore.
