New Delhi: The rural employment scheme MGNREGS has reached its operational limits and requires reassessment in view of changing rural realities, the Economic Survey 2025-26 said on Thursday.

Tabled in Parliament by Finance Minister Nirmala Sitharaman, the survey said that while the scheme has stabilised rural incomes and provided employment since 2005, rising incomes, better connectivity and diversified livelihoods have altered employment needs.

It noted that administrative and digital reforms improved transparency and participation, with women's share rising from 48 per cent in FY14 to 58.1 per cent in FY25 and electronic wage payments becoming nearly universal.

However, structural issues such as weak monitoring, misuse of funds and limited completion of 100 days of work persisted, affecting the scheme's overall effectiveness.

Against this backdrop, the survey highlighted the enactment of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, which replaces MGNREGS with a more accountable, infrastructure-focused framework aligned with the Viksit Bharat 2047 vision.