India Overhauls Rural Job Scheme with 2025 Viksit Bharat Act

The new legislation marks a departure from the 2005 framework, increasing the employment guarantee by 25 days. To support this expansion, the Central Government has earmarked ₹95,600 crore for the current fiscal year, with supplementary budgetary commitments secured from states. A core pillar of the act involves decentralizing project selection, granting Gram Panchayats the authority to design localized infrastructure initiatives that reflect community priorities rather than top-down mandates.

While the Ministry of Rural Development promotes the change as a productivity-oriented modernization, the policy has triggered political friction. Critics have leveled sharp objections against the removal of Mahatma Gandhi’s name from the flagship program, alongside concerns regarding the recalibrated funding ratio between the Centre and state governments. Despite this pushback, the government maintains that the new structure provides a more robust, future-ready paradigm for rural economic transformation.