New Delhi: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) has once again demonstrated its importance as a cornerstone of India’s rural welfare policy. According to the Ministry of Rural Development’s latest report for the financial year 2024-25, the scheme has generated an unprecedented 3,029 crore person-days of employment, marking an impressive 82% rise in employment generation over the past decade.
This dramatic growth underscores the government’s focused efforts on rural empowerment, poverty alleviation, and enhancing livelihood security for millions of vulnerable households across the nation.
Understanding MGNREGA: A Vital Pillar of Rural Development
Launched in 2005, MGNREGA is a centrally sponsored scheme aimed at providing guaranteed wage employment to rural households. The program promises a minimum of 100 days of unskilled manual work in a financial year to every adult member of a rural family willing to work.
MGNREGA covers every rural district in India, barring those with 100% urban populations. Beneficiaries include rural households with members aged 18 years and above. The scheme ensures that employment is not only provided but is also linked to the development of sustainable rural assets such as roads, ponds, and irrigation canals, thereby contributing to long-term rural infrastructure.
Wages under MGNREGA are determined based on the Consumer Price Index for Agricultural Laborers (CPI-AL), ensuring that the income of rural workers is adjusted according to inflation.
Record-Breaking Budget Allocation Reflects Government Commitment
The Government of India has continuously raised the budgetary support for MGNREGA over the years. The scheme’s financial allocation saw an unprecedented rise from ₹11,300 crore in the financial year 2006-07 to ₹33,000 crore by 2013-14. However, in the financial year 2024-25, the scheme reached an all-time high budget allocation of ₹86,000 crore in the Budget Estimates.
In a press release, the Ministry of Rural Development affirmed the government’s dedication, stating,
“The Government remains committed to strengthening livelihood security in rural areas, as reflected in the continuous rise in budgetary support for MGNREGA. The allocation of ₹86,000 crore this year marks the highest-ever provision at the Budget Estimate stage.”
The significance of MGNREGA was most evident during the COVID-19 pandemic in 2020-21, when a record ₹1,11,000 crore was spent under the scheme to support vulnerable rural populations facing economic distress.
82% Increase in Person-Days of Employment Generated
The expansion of MGNREGA’s impact is evident in the dramatic increase in employment opportunities generated. Between FY 2006-07 and FY 2013-14, the scheme created 1,660 crore person-days of employment. In contrast, from FY 2014-15 to FY 2024-25, it has generated a remarkable 3,029 crore person-days—an 82% surge.
This record growth highlights not only the scheme’s capacity to deliver employment but also its evolution into a reliable social safety net for millions of rural households.
Massive Increase in Financial Outlay and Rural Assets
The total financial outlay under MGNREGA has seen a staggering increase over the past decade. While ₹2,13,220 crore was spent between FY 2006-07 and FY 2013-14, the expenditure skyrocketed to ₹7,81,302 crore in the following ten years.
This infusion of funds has facilitated the creation of 8.07 crore durable rural assets, a significant leap from the 1.53 crore assets developed in the earlier decade. Rural assets include water conservation structures, roads, farm ponds, irrigation wells, and various other critical infrastructure projects that improve rural livelihoods.
Additionally, the number of geotagged assets under MGNREGA increased by an impressive 526%, further improving transparency, monitoring, and accountability in asset creation.
Empowering Women: A Remarkable Rise in Female Participation
One of the most commendable achievements of MGNREGA is the significant rise in women’s participation. In FY 2013-14, female participation stood at 48%. As of the financial year 2024-25, it has soared past 58%, reflecting sustained government efforts to empower rural women through guaranteed employment.
The increase in female workforce participation under MGNREGA has not only provided economic independence to millions of women but has also led to broader social empowerment, improving their standing in family and community decision-making processes.
Diversified Work Categories to Support Sustainable Development
MGNREGA currently allows 266 categories of permissible works, ensuring a comprehensive approach to rural development:
- 150 categories dedicated to agriculture and allied activities, supporting farmers and promoting sustainable agricultural practices.
- 58 categories focused on natural resource management (NRM), emphasizing the conservation of soil, water, and other crucial resources.
- 58 categories related to rural infrastructure development, improving connectivity, irrigation, and access to essential services.
Water conservation and natural resource management remain key priorities under the scheme. Initiatives such as check dams, farm ponds, irrigation wells, and community ponds are being implemented across the country. As a result, the number of water-stressed rural blocks has been reduced by 35%—from 2,264 to 1,456 over the past decade.
Technology and Digital Reforms Driving Transparency and Efficiency
The government has implemented several technological reforms to enhance the transparency and efficiency of MGNREGA operations.
Aadhaar-Based Payment System (ABPS):
The Aadhaar seeding of active MGNREGA workers has reached 99.49%, covering 13.45 crore individuals—a massive leap from just 76 lakh workers in 2014. This initiative ensures that wages are credited directly into workers’ bank accounts, eliminating middlemen and preventing leakages.
National Mobile Monitoring System (NMMS):
The NMMS application enables real-time electronic attendance of MGNREGA workers at work sites, significantly reducing the scope for fake entries and bogus beneficiaries. Although manual attendance provisions are still allowed in exceptional circumstances, the app has become a powerful tool for enhancing field-level transparency.
National Electronic Fund Management System (NeFMS):
NeFMS has revolutionized fund disbursement under MGNREGA. With 100% wage payments now made electronically, the scheme has become the largest Direct Benefit Transfer (DBT) program in India. This is a monumental leap from just 37% electronic wage payments recorded in 2013.
These technology-driven reforms have streamlined fund flows, ensured timely payments, and minimized corruption and inefficiencies.
Success of Amrit Sarovar Mission: Reviving Water Bodies Across India
One of the landmark initiatives under MGNREGA in recent years is the creation of Amrit Sarovars—large water bodies aimed at conserving water, improving groundwater levels, and promoting sustainable agriculture.
Under Phase I, more than 68,000 Amrit Sarovars have been constructed across India. These reservoirs serve multiple purposes, including:
- Enhancing water availability for irrigation
- Recharging groundwater tables
- Supporting livestock
- Boosting local biodiversity
This mission has not only improved the rural water crisis but has also contributed to climate resilience and sustainable development in rural areas.
MGNREGA: A Resilient Safety Net for Rural India
With over 3,029 crore person-days of employment generated, nearly 8.07 crore assets created, and ₹7,81,302 crore spent in just a decade, MGNREGA stands tall as one of the largest public works programs in the world.
Its impact during the COVID-19 pandemic demonstrated its resilience and crucial role as a social safety net. By offering guaranteed employment and wage security, MGNREGA has significantly contributed to poverty reduction, rural empowerment, and inclusive growth.
The consistent increase in women’s participation, massive asset creation, technological upgrades, and water conservation efforts underline the government’s commitment to making MGNREGA not just an employment program but a holistic rural development mission.
Conclusion: MGNREGA’s Continued Relevance in Shaping Rural India
The Mahatma Gandhi National Rural Employment Guarantee Act continues to be a beacon of hope for millions of rural families. With its impressive achievements over the past decade, the scheme has evolved into a powerful tool for rural transformation, women’s empowerment, and sustainable development.
As India charts its path toward becoming a $5 trillion economy, programs like MGNREGA will play a pivotal role in ensuring that growth is inclusive, equitable, and sustainable. The government’s focus on transparency, technology-driven reforms, and asset creation will further strengthen the scheme, ensuring that MGNREGA continues to serve as the lifeline for India’s rural population.
Frequently Asked Questions (FAQs)
Q1: What is the main objective of MGNREGA?
A1: MGNREGA aims to provide at least 100 days of guaranteed wage employment annually to rural households, promoting livelihood security and sustainable development.
Q2: How much budget has been allocated for MGNREGA in FY 2024-25?
A2: The government has allocated ₹86,000 crore for MGNREGA in FY 2024-25, marking the highest-ever provision at the Budget Estimate stage.
Q3: What is the status of Aadhaar seeding under MGNREGA?
A3: Aadhaar seeding has been completed for 99.49% of active MGNREGA workers, covering 13.45 crore individuals.
Q4: How has women’s participation in MGNREGA changed?
A4: Women’s participation has increased from 48% in FY 2013-14 to over 58% in FY 2024-25, reflecting enhanced women empowerment.
Q5: What are Amrit Sarovars under MGNREGA?
A5: Amrit Sarovars are water conservation projects under MGNREGA. Over 68,000 have been created to improve irrigation and groundwater levels across rural India.
