Centre resumes MGNREGS, PM Awaas scheme in West Bengal

The Central government resumed MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) operations in West Bengal from June 1, 2026, after a suspe...

What Happened

The Central government resumed MGNREGS (Mahatma Gandhi National Rural Employment Guarantee Scheme) operations in West Bengal from June 1, 2026, after a suspension of approximately four years.
The Ministry of Rural Development sanctioned 1.5 crore mandays of work for June 2026, enabling revival of the 100-day employment programme for rural households.
From July 1, 2026, MGNREGS in West Bengal will transition to the new national successor programme — VB-G RAM G (Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission Gramin) — which guarantees 125 days of employment annually.
A fresh beneficiary identification exercise under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) has been launched, with survey teams conducting door-to-door verification in every Gram Panchayat, targeted for completion by July 20, 2026.
The resumption follows the BJP's victory in the May 2026 West Bengal assembly elections (207 of 294 seats), which significantly changed the political dynamic governing Centre-State scheme implementation in the state.
Central funding for both schemes had been withheld since March 2022 under Section 27 of the MGNREGS Act, citing financial irregularities, non-permissible works, splitting of projects, and lack of transparency discovered during inspections across 19 districts.
Pending dues to West Bengal stood at approximately ₹13,965 crore (Centre's acknowledged share) under MGNREGS and PMAY-G combined, with the state having claimed ₹18,000 crore.

Static Topic Bridges

Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MGNREGA)

MGNREGA provides a legal guarantee of at least 100 days of wage employment per financial year to adult members of rural households willing to do unskilled manual work. It is a demand-driven, rights-based legislation under which failure to provide work within 15 days triggers payment of an unemployment allowance. The Central government funds 100% of unskilled wages, 75% of semi-skilled/skilled wages and materials, and 6% of administrative costs; states bear the balance.

Enacted in 2005; initially launched in 200 districts, universalised to all rural districts by 2008.
Section 27 of the Act empowers the Central government to order stoppage of funds to a state upon finding irregularities, after giving a reasonable cure period.
Social audits by Gram Sabhas are mandated to ensure community-level accountability.
Wage rates are notified separately for each state and revised annually.
In West Bengal, between 51–80 lakh families benefited annually from the scheme between 2014-15 and 2021-22 before the suspension.

Connection to this news: The Centre invoked Section 27 in March 2022 to halt funds to West Bengal; the resumption in 2026 marks the end of this enforcement action and the beginning of scheme transition to VB-G RAM G.

VB-G RAM G (Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission Gramin) Act, 2025

The VB-G RAM G Act, passed by Parliament on December 18–19, 2025, replaces MGNREGA and upgrades the rural employment guarantee framework under the Viksit Bharat 2047 vision. It raises the statutory entitlement from 100 days to 125 days per household per year and introduces a new cost-sharing structure.

Employment guarantee: 125 days per rural household per financial year (up from 100 days).
Four work domains: water security, rural infrastructure, livelihood-related infrastructure, and mitigation of extreme weather events.
Fund-sharing: 60:40 Centre-State ratio for plains; higher Central share (90:10) for Northeastern and Himalayan states; 100% Central funding for UTs without legislatures.
A "seasonal pause" provision prohibits work during notified peak agricultural seasons (up to 60 days annually).
Administrative cost ceiling raised from 6% to 9%.
Mandatory biometric authentication, satellite-based spatial planning, and weekly public disclosure.
Annual budget for West Bengal alone projected at over ₹12,850 crore under the new scheme.

Connection to this news: West Bengal will operate briefly under revived MGNREGS (June 2026) before transitioning to VB-G RAM G from July 1, 2026 — making this resumption both a resolution of a long-standing Centre-State dispute and an onboarding step into the new national framework.

Pradhan Mantri Awaas Yojana-Gramin (PMAY-G)

PMAY-G, launched on April 1, 2016, provides financial assistance to houseless and kutcha-house-dwelling rural families for construction of pucca housing with basic amenities. It replaced the earlier Indira Awaas Yojana and set a target of 2.95 crore houses by 2024, subsequently extended.

Unit assistance: ₹1,20,000 in plain areas; ₹1,30,000 in hilly/difficult/tribal areas.
Fund-sharing: 60:40 (Centre:State) for plains; 90:10 for Northeastern and Himalayan states; 100% Central for UTs without legislatures.
Beneficiaries identified through the Socio-Economic and Caste Census (SECC) 2011 and Awaas+ surveys; Gram Sabha approval is mandatory.
West Bengal achieved approximately 75% house completion rate under PMAY-G before facing suspension over selection irregularities and exclusion of eligible beneficiaries.

Connection to this news: Alongside MGNREGS, PMAY-G was also frozen for West Bengal from 2022 under the broader Centre-State dispute. The fresh beneficiary survey launched in 2026 resets the identification exercise to address the irregularities that triggered suspension.

Cooperative Federalism and Centre-State Welfare Scheme Disputes

Cooperative federalism refers to the constitutional principle where Centre and States function collaboratively to deliver public goods, with the Centre setting policy and funding frameworks and States implementing on the ground. Centrally Sponsored Schemes (CSS) like MGNREGS and PMAY-G operate precisely at this interface.

Under Schedule VII, Employment and Social Security fall in the Concurrent List, giving both levels of government legislative competence; but in practice, CSS are Centre-driven with tied grants to states.
The Finance Commission and NITI Aayog periodically review CSS to ensure fiscal federalism is not distorted by conditions attached to Central transfers.
Courts — including High Courts and the Supreme Court — have jurisdiction to review Central government actions that withhold scheme funds, as seen in the Calcutta High Court's June 2025 direction (upheld by the Supreme Court in October 2025) to resume MGNREGA from August 1, 2025.
The Supreme Court dismissed the Centre's Special Leave Petition (Bench: Justice Vikram Nath and Justice Sandeep Mehta) against the Calcutta HC order, reinforcing that Central funding obligations under social legislation cannot be indefinitely withheld even amid implementation disputes.

Connection to this news: The resumption of both schemes in West Bengal is a textbook case of cooperative federalism being tested — and ultimately restored — through a combination of judicial intervention, political change, and accountability mechanisms built into the legislation itself.

Key Facts & Data

MGNREGS suspended in West Bengal: March 2022 (under Section 27, MGNREGA Act, 2005).
Duration of suspension: ~4 years (March 2022 – June 2026).
Mandays sanctioned for June 2026 restart: 1.5 crore.
VB-G RAM G transition in West Bengal: July 1, 2026.
VB-G RAM G guaranteed employment: 125 days per household (vs. 100 days under MGNREGA).
VB-G RAM G Act passed: December 18–19, 2025.
Projected annual VB-G RAM G budget for West Bengal: over ₹12,850 crore.
PMAY-G fund-sharing (plains): Centre 60%, State 40%.
PMAY-G unit assistance (plains): ₹1,20,000; hills/difficult areas: ₹1,30,000.
PMAY-G launched: April 1, 2016 (replaced Indira Awaas Yojana).
West Bengal PMAY-G completion rate before suspension: ~75%.
Pending Central dues acknowledged: ~₹13,965 crore (MGNREGS + PMAY-G combined).
Calcutta High Court order directing MGNREGA resumption: June 2025 (effective August 1, 2025).
Supreme Court dismissed Centre's SLP against HC order: October 2025.
West Bengal BJP assembly win: May 2026 (207 of 294 seats).
New PMAY-G beneficiary survey deadline: July 20, 2026.
New panchayat personnel to be recruited: 11,154.
New Self-Help Groups to be formed: 1 lakh.