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MGNREGA Amendments 2025: What Has Changed and Why It Matters?

  • Writer: TPP
    TPP
  • Nov 30, 2025
  • 2 min read

2025 MGNREGA Reforms Explained: New Amendments Mandate Higher Water-Related Spending in Groundwater-Stressed Rural Blocks.


The Central Government has amended Schedule-I of the MGNREGA Act to prioritise water conservation and groundwater-related works in rural areas. The amendment mandates higher spending on water-related assets in blocks suffering from groundwater stress.


What Are the Core Objectives of MGNREGA?

MGNREGA was designed as a rights-based employment guarantee scheme with the following goals:

  • To provide at least 100 days of guaranteed unskilled employment per rural household per financial year.

  • To strengthen the livelihood resource base of the rural poor.

  • To ensure proactive social inclusion, especially of vulnerable groups.

  • To empower and strengthen Panchayati Raj Institutions by giving them implementation responsibilities.


What Are the Major Amendments Made in 2025?

The new amendments focus on groundwater management and water conservation:

MGNREGA Amendments 2025: What Has Changed and Why It Matters?
  1. How will rural blocks be prioritised?

Blocks are now categorised based on groundwater status as per the Dynamic Ground Water Resources Assessment Report of the Central Ground Water Board (CGWB):

  • Over-exploited (>100%)

  • Critical (>90% to ≤100%)

  • Semi-critical (>70% to ≤90%)

  • Safe (≤70%)


  1. How much of MGNREGA spending must go toward water-related works?

The District Programme Coordinator/Programme Officer must ensure minimum spending as follows:

  1. 65% in Over-exploited and Critical blocks

  2. 40% in Semi-critical blocks

  3. 30% in Safe blocks

This ensures that regions with the worst groundwater stress receive the highest priority.


What Is MGNREGA?

  1. Launch Year: 2005

  2. Type: Centrally Sponsored Scheme (Centre–State = 60:40)

  3. Ministry: Ministry of Rural Development

  4. Budget 2025: ₹86,000 crore

  5. Beneficiaries: Rural households with members aged 18+

  6. Coverage: All rural India except fully urban districts

  7. Monitoring: Social audit by Gram Sabha

  8. Wage Rate Basis: CPI-AL (Agriculture Labour Index); States may add top-ups.


Who Gets Additional 50 Days of Employment?

Additional employment is granted under:

  1. Drought- or disaster-affected rural areas

  2. ST households under Forest Rights Act (FRA), 2006 with no other private land

  3. States may add more days from their own funds.


What Rights and Allowances Are Guaranteed?

  1. Unemployment allowance if work is not provided within 15 days.

  2. Delay compensation at 0.05% per day beyond 16th day after muster roll closure.


Who Falls Under the Special Category of Workers?

MGNREGA prioritises vulnerable groups, including:Persons with Disabilities, Primitive Tribal Groups, Nomadic Tribes, De-notified Tribes, Women in special circumstances, Senior citizens (65+), HIV-positive persons, Internally displaced persons, and rehabilitated bonded labourers.


What Are Key Procedural Features of MGNREGA?

  1. 60:40 wage-to-material ratio at Gram Panchayat level

  2. At least one-third beneficiaries must be women

  3. GeoNREGA for geotagged monitoring of assets (Before–During–After)

  4. Project UNNATI for skilling beneficiaries to transition to full-time employment


What Are the Achievements of MGNREGA So Far?

  • Recognised as the world’s largest social welfare programme

  • Women’s participation has increased from 48% (2014) to 58% (2025)

  • Major contributor to rural livelihood security, asset creation, and women’s empowerment


Why Do the 2025 Amendments Matter?

The new groundwater-prioritisation framework links rural employment directly with water security, ensuring that MGNREGA funds help restore aquifers, improve resilience, and support long-term sustainability. It aligns rural development with climate adaptation and environmental protection.


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