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Politics

Attempt to expand Centre’s control, shrink funds: Priyanka slams MGNREGA overhaul

MTXNewsroom
Last updated: December 16, 2025 7:32 am
By MTXNewsroom
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In a recent address to the Lok Sabha, Congress General Secretary Priyanka Gandhi Vadra criticized the Indian government’s proposed overhaul of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), alleging that the changes aim to increase central control while reducing financial responsibilities and allocations to states. The MGNREGA, enacted in 2005, provides a legal guarantee for at least 100 days of unskilled wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.

The proposed amendments to MGNREGA, which have sparked significant debate, include a shift in the funding structure and the introduction of new eligibility criteria for beneficiaries. The government argues that these changes are necessary to improve the efficiency and effectiveness of the program, which has been a cornerstone of rural employment and poverty alleviation in India. However, critics, including Priyanka Gandhi, contend that the modifications will undermine the program’s original intent and disproportionately affect the rural poor.

During her speech, Gandhi emphasized that the amendments represent a systematic attempt by the central government to consolidate power at the expense of state governments. She argued that the proposed changes would lead to a reduction in the financial resources available to states, thereby limiting their ability to implement and manage employment programs effectively. “This is not just an overhaul; it is an attempt to expand the Centre’s control while shrinking its responsibilities and funds,” she stated.

The MGNREGA has been credited with providing a safety net for millions of rural households, particularly during economic downturns or periods of agricultural distress. The program has also been instrumental in empowering women and marginalized communities by providing them with a source of income and promoting their participation in the workforce. However, the implementation of MGNREGA has faced challenges, including delays in wage payments, bureaucratic hurdles, and allegations of corruption.

The government’s proposed changes come at a time when rural employment is under significant strain due to various factors, including the impact of the COVID-19 pandemic, erratic monsoon patterns, and rising inflation. Critics argue that reducing funding and increasing central oversight could exacerbate these challenges, leaving vulnerable populations without adequate support.

The timeline for the proposed changes has not been clearly defined, but the government has indicated that it aims to implement the new framework in the upcoming fiscal year. This has raised concerns among opposition parties and civil society organizations, who fear that the transition could lead to disruptions in service delivery and a decline in employment opportunities for rural workers.

The implications of the MGNREGA overhaul extend beyond immediate employment concerns. The program has been a critical tool for rural development and social security, and any changes to its structure could have long-term effects on poverty alleviation efforts in India. Analysts warn that a reduction in funding could lead to increased rural distress, further exacerbating existing inequalities and undermining the progress made in recent years.

The debate surrounding the MGNREGA overhaul is emblematic of broader tensions between the central and state governments in India, particularly regarding fiscal federalism and the distribution of resources. As states grapple with their own financial challenges, the potential for conflict over funding and implementation of centrally sponsored schemes like MGNREGA is likely to intensify.

In response to the criticism, government officials have defended the proposed changes, asserting that they are designed to enhance accountability and ensure that funds are utilized effectively. They argue that the new framework will streamline processes and reduce bureaucratic inefficiencies, ultimately benefiting rural workers.

As the Lok Sabha prepares to discuss the proposed amendments further, the outcome of this debate will be closely watched by various stakeholders, including state governments, rural communities, and advocacy groups. The future of MGNREGA, a program that has significantly impacted the lives of millions, hangs in the balance as the government seeks to navigate the complexities of rural employment and development in India.

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