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EconomyThe Hindu21 May 2026

Rules for new rural employment scheme to be issued soon

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๐Ÿ“Œ Summary:

  • Rules governing the new rural employment guarantee scheme โ€” the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), scheduled to come into force from July 1 โ€” will be released by the government in the next few days

  • Officials of the Union Ministry of Rural Development informed a Parliamentary Standing Committee, headed by Congress leader Saptagiri Ulaka, which met on May 20 to review preparatory work

  • A key pending issue is the formulation of a system for the normative allocation of funds among States; Section 4(5) of the legislation requires the Central government to determine State-wise normative allocation each financial year "based on objective parameters as may be prescribed" โ€” aimed at more equitable distribution of resources

  • The Ministry told the panel that 25 States have already allocated funds, and all major States have made the required budgetary provisions for implementation from July 1

  • Beneficiaries will be issued new smart job cards (Gramin Rozgar Guarantee Cards) replacing those issued under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005

  • The new cards will include a face-recognition feature to improve transparency and accountability; existing job cards will remain valid temporarily for workers who have completed e-KYC, until the new cards are issued

๐ŸŽฏ UPSC Relevance: GS2 (Governance and Social Justice) โ€” design and rollout of welfare schemes, the transition from MGNREGS, fiscal federalism in scheme funding, and use of technology for transparency.

๐Ÿ“ Prelims Facts:

  • The new scheme is the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin), set to take effect from July 1, 2026

  • It replaces the job-card framework of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005

  • New smart job cards will carry a face-recognition feature

  • The Parliamentary Standing Committee reviewing the scheme is headed by Saptagiri Ulaka

๐Ÿ”‘ Key Term: Normative allocation โ€” the distribution of central funds to States based on objective, prescribed parameters rather than on past expenditure or demand, intended to ensure equitable resource sharing.

Rural employmentViksit Bharat Rozgar MissionMGNREGSWelfare schemeRural Development

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