MGNREGA Repeal Bill Sparks State Burden Fears

By John Pranay (Editor)

Opposition to the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, is intensifying in India's Parliament, with critics warning of increased financial burdens on state governments. The Lok Sabha began debate on the bill, which seeks to repeal the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), on Wednesday, December 17. The bill aims to replace the existing legislation, but its passage is met with resistance from opposition parties and activists.

The government has conveyed its intent to pass the bill in the ongoing session of Parliament, which concludes on Friday, December 18. The Lok Sabha concluded its discussion on the bill on Wednesday, with Union Rural Development Minister Shivraj Singh Chouhan set to reply to the debate on Thursday. The TDP has flagged the increased burden on the state government, with Andhra Pradesh being a revenue-deficient state. The DMK has also criticized the bill, pointing out that the financial burden on states is increasing, despite the state government's share in central taxes shrinking. The opposition has also raised concerns about the centralization of decision-making powers and the imposition of a top-down approach.

• December 17, 2025: Lok Sabha begins debate on the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025.

• December 17, 2025: Union Rural Development Minister Shivraj Singh Chouhan concludes his speech on the bill.

• December 17, 2025: Lok Sabha concludes its discussion on the bill.

• December 18, 2025: Union Rural Development Minister Shivraj Singh Chouhan to reply to the debate on the bill.

• December 19, 2025: Nationwide protests announced by activist and politician Yogendra Yadav.

The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, has significant implications for state governments, particularly those with revenue deficits. The TDP has flagged the increased burden on the state government, with Andhra Pradesh being a prime example. The DMK has also raised concerns about the financial burden on states, despite the state government's share in central taxes shrinking. The opposition has also highlighted the centralization of decision-making powers and the imposition of a top-down approach.

The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, is a significant development in India's rural employment landscape. The bill aims to replace the existing MGNREGA, but its passage is met with resistance from opposition parties and activists. The bill's implications extend beyond the rural employment sector, with potential consequences for state governments and the economy as a whole. The debate surrounding the bill highlights the need for a more nuanced approach to rural employment, one that takes into account the diverse needs and challenges of different states.

The Lok Sabha will continue its discussion on the bill on Thursday, December 18, with Union Rural Development Minister Shivraj Singh Chouhan set to reply to the debate. The opposition has announced nationwide protests from December 19, with activist and politician Yogendra Yadav leading the charge. The outcome of the bill's passage remains uncertain, with the government facing resistance from opposition parties and activists.

The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, represents a significant shift in India's rural employment landscape. The bill's centralization of decision-making powers and imposition of a top-down approach raise concerns about the potential consequences for state governments and the economy. Crucially, this overlooks the importance of a demand-driven approach to rural employment, one that takes into account the diverse needs and challenges of different states. This suggests that the government's approach may exacerbate existing inequalities and undermine the very purpose of the MGNREGA.

Overall, the medium-term sentiment around this story is Bearish.

1. Bill to replace MGNREGA faces criticism; TDP flags increased burden on State — https://www.thehindu.com/news/national/opposition-activists-oppose-new-bill-replacing-mgnrega/article70408586.ece

2. Parliament Winter session Day 14 LIVE: Rajya Sabha debates new Nuclear Bill- SHANTI — https://www.thehindu.com/news/national/parliament-winter-session-lok-sabha-rajya-sabha-day-14-live-updates-december-18-2025/article70410178.ece

Methodology: This analysis combines real-time data aggregation from manually selected global sources with advanced AI synthesis, engineered to provide neutral and data-driven insights.