The Viksit Bharat-Guarantee for Employment and Livelihood Mission (Rural) Act replaces MGNREGA nationwide from July 1, 2026. For 2026-27, the Centre allocated ₹95,692 crore; total outlay including states exceeds ₹1.51 lakh crore. Rajasthan receives ₹7,581 crore centrally plus ₹4,000 crore state contribution, totalling over ₹11,581 crore. Key changes: guaranteed employment raised from 100 to 125 days annually, and wages now paid weekly via DBT instead of within 15 days.

MGNREGA, enacted in 2005, has been India's largest rural employment safety net — guaranteeing 100 days of unskilled work per rural household annually. Its replacement, the Viksit Bharat-Guarantee for Employment and Livelihood Mission (Rural) Act 2025, signals a structural upgrade rather than merely a rebranding exercise.

The key shifts are threefold. First, the entitlement rises from 100 to 125 days per household — a 25% increase in statutory employment security, directly addressing criticism that 100 days was insufficient given rural distress cycles. Second, the payment mechanism shifts from a 15-day window to weekly DBT transfers, which addresses the chronic delay problem that has long undermined MGNREGA's effectiveness and fuelled protests. Third, the Act mandates convergence with other departmental schemes to improve asset quality — addressing the criticism that MGNREGA assets like ponds, roads and check dams were poorly maintained and duplicated across departments.

For UPSC GS3, this topic sits at the intersection of rural development, social security, welfare economics, and federal fiscal architecture. The ₹1.51 lakh crore total outlay signals that demand-driven employment guarantee programmes remain central to India's inclusive growth strategy under Viksit Bharat 2047. The unemployment allowance and wage-delay compensation provisions also have implications for labour rights and constitutional directive principles under Articles 39(a) and 41.