New Delhi: Even as the Centre pushes to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) with a new rural jobs framework, states have still owed more than ₹9,700 crore under the existing scheme, according to data presented by the government in Parliament.
The data also highlights a persistent shortfall in employment generation. While MGNREGA legally guarantees 100 days of work per rural household, the all-India average employment in 2024–25 stood at just 50.24 days, a marginal decline from 52.07 days in 2023–24.
MGNREGA to Be Replaced by VB-G RAM G
The Centre has introduced a Bill in Parliament to replace MGNREGA with the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Grameen), or VB-G RAM G. According to the government, the new framework aims to align rural employment with the broader vision of Viksit Bharat 2047.
Under the proposed law, the guaranteed employment is set to increase from 100 to 125 days per year, along with assurances of faster wage payments.
₹9,746 Crore Pending Liabilities
As per official data, pending liabilities under MGNREGA stood at ₹9,746.39 crore as of December 5, 2025. This includes:
- ₹1,340.07 crore under the wage component
- ₹7,863.37 crore under the material component
- ₹542.95 crore towards administrative expenses
The total allocation for MGNREGA in the current financial year (FY 2025–26) is ₹86,000 crore. The Centre has maintained that fund releases and pending dues are dynamic and subject to daily changes.
Wide State-Level Disparities
MGNREGA is currently operational across 34 states and Union Territories, with sharp variations in employment outcomes.
- Mizoram recorded the highest average employment at 95.62 days in 2024–25.
- West Bengal reported zero workdays under the scheme during the same period.
The Centre attributed the suspension of work in West Bengal to administrative non-compliance, stating that the state’s labour budget for FY 2021–22 was not approved due to repeated violations of departmental guidelines.
As a result, fund releases to the state were stopped from March 9, 2022. Pending liabilities for West Bengal as of March 8, 2022, stand at:
- ₹1,457.22 crore in wages
- ₹1,607.68 crore under the material component
Across most other states, households received around 50 days of employment, far below the statutory guarantee.
A Two-Decade-Old Safety Net
Launched in 2005 by the UPA government, MGNREGA has been one of India’s largest social security programmes, providing a legal right to work and serving as a crucial safety net for rural households, particularly during economic distress and natural disasters.
What VB-G RAM G Promises
The newly proposed VB-G RAM G Bill seeks to address some of the scheme’s long-standing issues by:
- Raising guaranteed employment to 125 days
- Ensuring wage payments within 7 to 15 days of work completion
- Providing compensation for delayed payments
The Bill is expected to face scrutiny in Parliament amid concerns over pending dues, implementation gaps and the transition away from MGNREGA.