Centre diluting MGNREGA's core purpose, says Kisan Mazdoor Sangharsh Committee

Dec 23, 2025

New Delhi [India], December 23 : Kisan Mazdoor Sangharsh Committee (KMSC) leader Satnam Singh Pannu on Tuesday alleged that the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is being diluted and diverted from its original objective of ensuring livelihood security for rural and working-class families.
Pannu said that since its launch in 2005, MGNREGA had functioned as a rights-based programme, but recent changes introduced by the Central Government have altered its structure.
He cited official figures showing 26 crore job cards issued nationwide, with 12 crore beneficiaries. In Punjab, 20 lakh job cards have been issued, with 11 lakh workers employed.
"Across the country, around 26 crore job cards have been issued under the scheme, with nearly 12 crore beneficiaries receiving employment. In Punjab alone, approximately 20 lakh job cards have been issued, and about 11 lakh workers have been getting work under MGNREGA. However, it is being alleged that the Central Government has fundamentally altered the structure of MGNREGA and introduced it in a new form, thereby undermining its original objectives," Pannu said.
He claimed that "the Central Government has taken away the powers of Gram Sabhas and Panchayats, which earlier decided development works in villages."
Pannu added, "One of the key features of MGNREGA was that the Gram Sabha and Panchayats had the authority to decide the nature of development works to be undertaken in villages. These included activities such as desilting ponds, digging canals, plantation drives, irrigation-related works, and soil-filling tasks," he said.
Pannu further alleged that changing the funding ratio from 90:10 to 60:40 has made it impossible for states to sustain the scheme.
"Earlier, the funding structure of MGNREGA comprised 90 per cent contribution from the Central Government and 10 per cent from State Governments. This has now reportedly been revised to a 60:40 ratio, placing a significantly higher financial burden on the states," he added.
He added that farmers and labour unions have announced statewide village-level mobilisations leading up to the 26th of this month to oppose alleged changes to MGNREGA. The organisations have appealed to farmers, labourers, and MGNREGA workers across Punjab and the country to unite and protest against both the Central and State Governments.