Supreme Court lauds scrapped MGNREGA scheme; calls it neither freebie nor exploitation
The Supreme Court lauded the repealed MGNREGA scheme as 'salutary' and not a freebie, contrasting it with its successor, the VB-G RAM G Act, which civil rights groups claim has led to a 50% decline in employment. The court was hearing a petition seeking payment of delayed wages and the elevation of the right to work to a fundamental right under Article 21.
Why it matters
This article highlights a significant judicial commentary on a major social welfare scheme, raising questions about the effectiveness and constitutional implications of its replacement, and the fundamental right to work in India.
The Supreme Court on Friday (August 21, 2026) praised the repealed Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), calling it a “salutary scheme” that was neither a freebie nor an exploitation of rural workers.
The court’s accolade came amid claims by civil rights groups that MGNREGA’s successor, the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) or the VB-G RAM G Act, has seen a 50% decline in employment generation, despite an increase in guaranteed work days from 100 to 125 per household annually.
The new law reflects a shift from a demand-driven, rights-based framework to a centrally controlled model. Also, the funding burden on States has increased three-fold, shifting from a 90:10 ratio to 60:40.
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