The central government has officially notified the rules for the rollout of a new employment guarantee scheme, replacing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). State governments have been directed to verify all MGNREGS liabilities existing up to June 30, settle admissible dues, and submit audited utilisation certificates within 180 days, according to an official statement.
Transition to New Scheme
The new scheme aims to improve upon the existing framework by streamlining beneficiary registration, wage disbursement, and project monitoring. The notification mandates that all pending liabilities under MGNREGS as of June 30 must be reconciled and cleared before transitioning to the new system. States that fail to submit audited utilisation certificates within the stipulated 180-day period may face delays in fund releases under the new scheme.
Verification and Settlement Process
State governments are required to conduct a thorough verification of all MGNREGS liabilities, including unpaid wages, material costs, and administrative expenses. Only admissible dues will be settled, and any discrepancies must be resolved with supporting documents. The process is intended to ensure a clean financial slate for the new scheme, which will incorporate enhanced technology for real-time tracking of work and payments.
According to the Ministry of Rural Development, the new scheme will feature a simplified registration process through a unified portal, linking Aadhaar and bank accounts to reduce delays. The government has allocated an initial budget of ₹1.2 lakh crore for the first year of the new scheme, as per sources.
Impact on Beneficiaries
The transition is expected to benefit over 15 crore rural households currently enrolled under MGNREGS. The new scheme proposes a 10% increase in minimum wage rates, subject to state-specific revisions. However, experts caution that the 180-day deadline for clearing liabilities may strain state resources, particularly in regions with high pending dues.
“The notification provides a clear framework for states to close old accounts and begin afresh. Timely compliance will be key to ensuring uninterrupted employment for rural workers,” said an official from the Ministry of Rural Development, speaking on condition of anonymity.
Next Steps
The Centre has urged states to appoint nodal officers for the verification process and to submit monthly progress reports. The new scheme is expected to be fully operational by the end of the current financial year, with a pilot phase starting in select districts from August 2026.
