Viksit Bharat Rural Employment Mission: Transforming India’s Rural Jobs Landscape
24 March 2026
Viksit Bharat Rural Employment Mission: Transforming India’s Rural Jobs Landscape
The Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) replaces MGNREGA, aiming to modernize India’s rural employment framework. By leveraging technology platforms like DBT Sparsh and Yuktdhara, introducing equitable fund allocation, and categorizing Panchayats for targeted development, the mission promises enhanced transparency, efficiency, and inclusivity in providing employment opportunities to rural workers.
Why in the News?
The
Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025
was passed by Parliament within two days of its introduction on
December 16, 2025
.
This new rural employment law will replace the
Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA)
.
However, the scheme cannot start immediately because several administrative and policy steps must be completed before its implementation.
The
Ministry of Rural Development
is holding regular consultations with State governments to finalise important operational details.
These discussions include issues such as fund allocation, classification of Panchayats, technological platforms, and rule-making.
What are the Key Highlights?
Replacement of the Earlier Rural Employment Scheme
The new law replaces the earlier rural employment programme under the
Mahatma Gandhi National Rural Employment Guarantee Act, 2005
.
The earlier scheme was introduced by the
United Progressive Alliance (UPA) government
.
The new legislation aims to restructure the rural employment framework under the broader
Viksit Bharat vision
.
Normative Allocation of Funds
The Act states that the
Central government will decide the state-wise allocation of funds every financial year
.
This allocation will be based on
objective parameters
, which are yet to be finalised.
The aim is to ensure
more equitable distribution of resources among States
.
Debate among States:
Some States argue that
past performance under MGNREGA
should be considered.
Other States argue that
current demand for employment
, especially in regions with high rural migration, should be prioritised.
Categorisation of Gram Panchayats
All
Gram Panchayats
will be classified into
Category A, B, or C
.
This classification will be based on
development parameters
.
One example mentioned in the law is
proximity to urban areas
.
The objective of categorisation is to
address the different development needs of Panchayats
.
Requirements Before the Scheme Starts
State governments must complete several preparations before implementation.
Completion of ongoing MGNREGA works
All unfinished works under the previous scheme must be completed first.
Enrollment on DBT Sparsh platform
States must register on
DBT Sparsh
, a banking platform for direct benefit transfers.
Under the new scheme,
the Centre and the States will share the financial burden
, which is a major change from the previous system.
e-KYC verification of job cards
Workers’ job cards must undergo
electronic Know Your Customer (eKYC) verification
.
Currently,
83% of active workers have completed eKYC verification
.
These job cards will remain valid until they are replaced with
smart cards
.
Use of Yuktdhara portal
States must adopt
Yuktdhara geospatial planning portal
.
This portal will be used to prepare the
Viksit Gram Panchayat Plan
, which will list all planned works for the year.
Rule-Making Process
The Central government must frame
rules under eleven different categories
.
These rules will cover aspects such as
social audit and scheme monitoring
.
Implementation Timeline
The scheme may
not start by April 1
as originally expected.
Once the Act is officially notified:
The notification date will be considered the
commencement date
.
States will have
six months to implement the scheme
.
Budget Allocation
The Union Budget of India allocated funds for rural employment programmes.
₹95,692.31 crore
allocated for VB-GRAM G.
₹30,000 crore
allocated for the remaining MGNREGS works.
Total allocation:
₹1,25,692.31 crore.
The government has presented this as a
43% increase
compared to the
₹88,000 crore revised estimate for MGNREGS in 2025-26
.
What is the Significance?
Reform in Rural Employment Policy
The new law represents a
major reform in India’s rural employment framework
.
It introduces
new administrative mechanisms and planning tools
.
More Equitable Resource Allocation
The concept of
normative allocation
aims to distribute funds more fairly.
Poorer States that earlier received fewer funds may benefit.
Focus on Local Development Needs
Categorising Panchayats into
A, B, and C categories
allows policies to be tailored to different development levels.
Greater Role for Technology
Platforms like
DBT Sparsh
and
Yuktdhara
will improve:
Transparency
Financial accountability
Planning efficiency
Shared Financial Responsibility
Under the new system,
both the Centre and States will share the cost
.
This may increase
State participation and responsibility
.
Stronger Planning at the Village Level
The
Viksit Gram Panchayat Plan
will create a
clear annual work plan
for villages.
This can improve coordination and reduce duplication of work.
Challenges
Uncertainty Over Allocation Parameters
The
objective parameters for fund allocation are not yet finalised
.
Different States have
conflicting demands
, making consensus difficult.
Concerns of High-Performing States
States that performed well under MGNREGA fear they may
lose funding advantages
if past performance is not considered.
Demand-Based vs Performance-Based Allocation
Some States want allocation based on
employment demand and migration levels
.
Balancing these factors is a complex policy challenge.
Technological and Administrative Readiness
All States must adopt
multiple digital platforms
, which may be difficult for weaker administrative systems.
Incomplete Worker Verification
17% of active workers have not yet completed eKYC verification
, which could delay implementation.
Inter-Governmental Coordination
The scheme requires
close coordination between the Centre and the States
.
Political and administrative differences may slow the process.
Transition from the Old Scheme
Ongoing works under the previous scheme must be completed first.
Managing the transition without disruption is a major challenge.
Way Forward
Finalising Transparent Allocation Criteria
The Centre should design
clear and transparent parameters
.
These parameters should balance:
past performance
employment demand
poverty levels
Strengthening State Consultation
Regular consultations with States should continue.
Cooperative federalism can help create
mutually acceptable rules
.
Improving Digital Infrastructure
The government should support States in adopting:
DBT Sparsh
Yuktdhara portal
eKYC systems
Ensuring Worker Inclusion
Special campaigns should ensure
100% eKYC verification
of job cards.
No worker should lose access due to technical issues.
Smooth Transition from MGNREGA
Remaining works under the earlier programme must be
completed quickly and efficiently
.
Workers should not face
employment gaps during the transition
.
Strengthening Monitoring and Social Audit
Strong
social audit mechanisms
must be developed.
This will help maintain
transparency and accountability
.
Conclusion
The new rural employment law represents an important attempt to redesign India’s rural development and livelihood support system. Its success will depend on careful planning, cooperation between the Centre and the States, and the effective use of technology to ensure that employment opportunities reach rural workers in a timely and fair manner.
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