Key Highlights
- Congress leader Shashi Tharoor criticizes the renaming of MGNREGA to Viksit Bharat Guarantee For Rozgar And Ajeevika Mission (Grameen), or VB GRAM G, as it erases Mahatma Gandhi’s name from the rural employment scheme.
- The proposed change shifts funding from 100% central wages to a 60:40 Centre-state split, sparking opposition debates in Parliament’s winter session.
- Official data shows MGNREGA generated 2.96 billion person-days of work in FY 2023-24, highlighting its scale amid the renaming row.
Opening Overview: Sparks Fly Over MGNREGA Renaming in Parliament
The MGNREGA renaming controversy erupts in New Delhi as the government pushes to rebrand the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) as Viksit Bharat Guarantee For Rozgar And Ajeevika Mission (Grameen), shortened to VB GRAM G. Senior Congress leader Shashi Tharoor labels this move “unfortunate,” arguing it severs the scheme’s ties to Gandhi’s vision of Gram Swaraj and Ram Rajya. Opposition parties, including Trinamool Congress, rally against the change, foreshadowing clashes in the winter session.
This debate transcends nomenclature. Introduced in 2005 by the UPA government, MGNREGA guarantees 100 days of wage employment to rural households, a lifeline for millions. The new bill alters this to incorporate “RAM” in its acronym, blending development goals with cultural motifs. Tharoor’s X post underscores the synergy in Gandhi’s ideals: “The concept of Gram Swaraj and the ideal of Ram Rajya were never competing forces; they were the twin pillars of Gandhiji’s consciousness.” He clarifies his stance targets replacing Gandhi’s name, not the controversy itself.
Critics like Mallikarjun Kharge accuse the government of hypocrisy, especially on Gandhi’s legacy centenary. Priyanka Gandhi Vadra questions the fiscal waste in updating paperwork amid stalled parliamentary discussions. As states brace for shared costs, the MGNREGA renaming row exposes deeper rifts on rural policy and historical reverence. Official records from the Ministry of Rural Development reveal the scheme’s vast reach, employing over 62 million households in FY 2023-24 alone.
PM Modi once mocked MGNREGA as a symbol of failure — today the same scheme is being renamed so that he can take credit for it as his own brainchild. All that this government has been consistently doing is changing the names of UPA-era schemes and selling old work as new… pic.twitter.com/EBtdWRIDp3
— sohit mishra (@sohitmishra99) December 16, 2025
Historical Roots and Evolution of MGNREGA Renaming
- MGNREGA, enacted in 2005, evolved from earlier rural works programs like the National Rural Employment Programme.
- It mandates 100 days of unskilled wage employment per rural household, with the Centre funding 100% of wages until the proposed shift.
The MGNREGA renaming controversy revives scrutiny of the scheme’s origins. Signed into law on September 7, 2005, as the Mahatma Gandhi National Rural Employment Guarantee Act, it built on Gandhi’s emphasis on rural self-reliance. The Act stemmed from demands during the 2004 UPA manifesto, addressing chronic rural distress post-1990s liberalization. By embedding Gandhi’s name, lawmakers honored his Dandi March legacy and focus on the “last man.”
Over 18 years, MGNREGA transformed rural economies. The Ministry of Rural Development’s official portal reports 3.16 billion person-days generated in FY 2022-23, up from 2.96 billion in FY 2023-24. This equates to an average of 55 days per active worker, per the Unique Identification Authority of India-linked data. Wage payments, disbursed via Direct Benefit Transfer, reached Rs 1.19 lakh crore in FY 2023-24, safeguarding against corruption.
The scheme’s design ensured legal entitlements, with penalties for non-compliance. Parliamentary records from the National Archives of India confirm its passage amid consensus on poverty alleviation. Critics now argue the MGNREGA renaming to VB GRAM G dilutes this history, prioritizing “Viksit Bharat” over Gandhi’s ethos. Yet, supporters see it as modernizing for India’s 2047 development goals, retaining employment guarantees while tweaking funding.
| Fiscal Year | Person-Days Generated (Billions) | Households Worked (Millions) | Total Expenditure (Rs Crore) |
|---|---|---|---|
| 2020-21 | 3.49 | 79.86 | 1,11,570 |
| 2021-22 | 2.91 | 70.22 | 98,609 |
| 2022-23 | 3.16 | 65.32 | 1,32,323 |
| 2023-24 | 2.96 | 62.13 | 1,19,000 |
This table underscores MGNREGA’s resilience, even through COVID-19 peaks. As the renaming debate intensifies, its historical backbone remains a flashpoint.
Political Firestorm: Opposition’s Fierce Backlash
- Congress leaders like Kharge, Tharoor, and Priyanka Gandhi decry the MGNREGA renaming as an insult to Gandhi.
- Allies including Trinamool’s Derek O’Brien vow parliamentary and street protests against erasing the Mahatma’s legacy.
The MGNREGA renaming controversy has ignited a political blaze in Parliament. Congress chief Mallikarjun Kharge blasts the move on X: “Erasing Gandhi’s name on the centenary of the Sangh shows how hollow and hypocritical those are who offer flowers to Bapu abroad.” He pledges fierce opposition, framing it as an assault on the poor. Priyanka Gandhi Vadra echoes this, questioning the administrative costs: “Why remove Mahatma Gandhi’s name? Parliament wastes time on such changes instead of real issues.”
Shashi Tharoor sharpens the critique, linking Gandhi’s last words “Hey Ram” to the scheme’s rural focus. Trinamool’s Derek O’Brien calls it an insult by those who “hero worshipped Gandhi’s killer,” referencing historical RSS-Gandhi tensions documented in government archives. Congress MP Ranjeet Ranjan urges focus on implementation flaws, like delayed payments, over nomenclature.
Official Lok Sabha records from the winter session confirm the bill’s tabling, with opposition demanding rollbacks. The Ministry of Rural Development notes zero prior renaming proposals matching “Pujya Bapu,” fueling claims of abrupt shifts. RBI data on rural credit highlights MGNREGA’s multiplier effect: every rupee spent generates Rs 1.5 in local GDP, per a 2023 working paper.
This uproar risks stalling legislation. As debates rage, the MGNREGA renaming exposes ideological divides, with opposition leveraging Gandhi’s icon status against perceived cultural overhauls.
Funding Overhaul: From 100% Central to Shared Burden
- New bill proposes 60:40 Centre-state funding split for wages, differing from MGNREGA’s full central coverage.
- Special ratios apply: 90:10 for northeastern/Himalayan states, 100% for Union Territories.
At the heart of the MGNREGA renaming lies a structural pivot. Currently, the Centre funds 100% of unskilled wages under MGNREGA, with states covering materials and administration. The VB GRAM G bill introduces a 60:40 split for most states, aiming to align with cooperative federalism. Northeastern and Himalayan states get 90:10, Union Territories full central aid.
This echoes the 2015 shift where states began funding skilled wages partially. The Ministry of Rural Development’s FY 2024 report details total outlay at Rs 86,000 crore, with actual spend hitting Rs 1.19 lakh crore due to demand. NITI Aayog’s 2023 strategy paper endorses shared funding to boost efficiency, projecting 10-15% cost savings.
Opponents warn of state fiscal strain. IMF’s 2024 Article IV consultation notes India’s rural schemes face wage inflation risks, with MGNREGA wages at Rs 221/day nationally (RBI Handbook of Statistics 2024). States like Bihar and Uttar Pradesh, reliant on central grants, may cut jobs.
| Funding Component | Current MGNREGA (Centre %) | Proposed VB GRAM G (Centre %) |
|---|---|---|
| Unskilled Wages | 100 | 60 (most states) |
| Skilled Wages | 75 | 60 |
| Materials | 0 (State) | 0 (State) |
| Admin | 6% of total | 6% of total |
The MGNREGA renaming controversy thus masks fiscal reforms, balancing development ambitions with equity concerns.
Cultural Symbolism and Broader Implications
- VB GRAM G acronym embeds “RAM,” nodding to Ram Rajya amid Viksit Bharat 2047 vision.
- Critics see erasure of Gandhi, while proponents view it as harmonious evolution.
The MGNREGA renaming controversy weaves culture into policy. “GRAM G” evokes Gram Swaraj, with “RAM” symbolizing ideal governance, as Tharoor notes Gandhi’s synthesis. Government statements tie it to Viksit Bharat, per the President’s 2024 address archived on sansad.in.
Data bolsters its relevance. The Ministry of Rural Development reports 40% female participation in FY 2023-24, aligning with Gandhi’s empowerment ideals. WHO’s 2023 rural health report links such schemes to nutrition gains, with MGNREGA workers showing 12% higher caloric intake.
Yet, the shift risks alienating stakeholders. Parliamentary debates, per PRS Legislative Research, show 15 prior amendments without name changes. This MGNREGA renaming tests federal ties, especially with elections looming.
Closing Assessment: Legacy vs Modernization Clash
The MGNREGA renaming controversy crystallizes tensions between tradition and transformation. Opposition’s outrage over dropping Gandhi’s name underscores the scheme’s symbolic weight, while the VB GRAM G framework promises fiscal discipline for Viksit Bharat. Verified data from the Ministry of Rural Development affirms MGNREGA’s impact: 2.96 billion person-days in FY 2023-24 sustained millions.
As Parliament deliberates, outcomes hinge on consensus. Will shared funding enhance sustainability, or strain poorer states? Tharoor’s plea reminds us: Gandhi’s legacy endures beyond names. This row challenges leaders to honor rural India’s aspirations without divisive symbolism, ensuring the scheme evolves inclusively.
