UP's Rural Job Scheme Faces Sharp Decline in Final Year
Uttar Pradesh's implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) has hit a significant roadblock in its final year. The state managed to provide the promised 100 days of employment to just 1.28 lakh rural households during the first nine months of the 2025-26 financial year. This figure represents a dramatic 80% decrease compared to the previous year's performance.
Steep Drop from Previous Years
Data reveals a concerning downward trend in MNREGS coverage across Uttar Pradesh. In 2024-25, approximately 6.16 lakh families received the full 100 days of employment guaranteed under the central government's flagship program. The current year's numbers pale in comparison to even earlier periods, with 68.54 lakh households covered in 2023-24, 70.03 lakh in 2022-23, and 77.59 lakh in 2021-22.
Officials now face a race against time with only three months remaining in the financial year. Matching last year's record achievement, which was the highest in five years, appears increasingly unlikely according to department insiders.
Budget Cuts and Wage Increases Create Constraints
The rural development department acknowledges multiple factors contributing to the slowdown. A substantial reduction in the labour budget stands out as a primary reason. Funding decreased from Rs 26 crore in 2024-25 to Rs 20 crore in 2025-26, representing a 26% cut.
Simultaneously, average daily wages increased from Rs 236 to Rs 250. While this wage hike benefits individual workers, it effectively reduces the number of workdays the state can finance within its allocated budget. Department sources confirm this financial constraint tightened significantly as wages rose.
Transition to New Scheme Creates Uncertainty
The MNREGS implementation challenges emerge just as the scheme prepares to transition to the newly enacted Viksit Bharat Guarantee Rozgar Evam Ajeevika Mission Gramin (VB-G-RAM-G). The replacement scheme promises an increased guarantee of 125 days of employment to rural households, signaling the Centre's stronger commitment to rural livelihoods.
However, analysts note that the final year of MNREGS implementation reveals "systemic stress" that could undermine this narrative. The promise of 125 days under VB-G-RAM-G may remain aspirational unless backed by substantially enhanced funding and more predictable fund release mechanisms.
Department Response and Future Outlook
A senior official from the rural development department stated that the issue is under close review. Many labourers have completed between 70 to 80 days of employment this fiscal year, leaving a gap to reach the 100-day guarantee.
"The department will be issuing muster rolls soon to get them employed in the next couple of months and cover the gap," said a senior official involved with MNREGS implementation in Uttar Pradesh.
Officials admit that even with aggressive muster roll issuance in the remaining months, matching last year's record appears improbable. The average wage is expected to increase further in the new financial year when MNREGS formally gives way to VB-G-RAM-G.
Given Uttar Pradesh's significantly large rural population, the Centre is expected to allocate higher funding to the state for the new scheme. The transition period highlights both the challenges of implementing rural employment guarantees and the expectations riding on the expanded VB-G-RAM-G program.
