Under the new system of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)—now renamed as Developed India Employment and Livelihood Guarantee Mission (G-RAM)—Bihar will receive an additional ₹2,800 crore.
Earlier, Bihar used to receive around ₹540 crore, but under the revised framework, the allocation will increase to ₹3,355 crore. This means the State will get ₹2,815 crore more than before.
Key Changes in the New System
Earlier, Bihar spent 10% of the total scheme cost, while the Central government contributed 90%.
Under the new arrangement, Bihar’s share will rise to 40%, and the Centre’s share will be 60%.
Despite the increased State contribution, Bihar will receive a much higher overall allocation.
Employment Boost
The scheme guarantees 125 days of employment instead of the earlier 100 days.
Wages under the scheme will continue to be paid by the Central government.
Budget Details
The Central government has allocated ₹7,850 crore under the scheme.
Bihar earlier spent ₹540 crore, but under the new structure, it will need to spend ₹3,355 crore.
Total expenditure under the scheme in FY 2024–25 is estimated at ₹8,390 crore.
Focus on Agriculture
The government has reiterated its long-standing plan to include agricultural work under the scheme. This move is expected to benefit both farmers and rural labourers by increasing employment opportunities in the agriculture sector.
Minister’s Statement
Rural Development Minister Shravan Kumar stated that the new system would strengthen rural employment and ensure better livelihood security for workers. Increasing workdays from 100 to 125 will significantly support rural households.
