Paper: GS – II, Subject: Governance, Topic: Government Policies, Issue: MGNREGA.
Context:
Recent amendments to Schedule-1 of MGNREGA are designed to address India’s water crisis by increasing funding for water conservation and harvesting projects.
Key Takeaways:
What is MGNREGA? It is a bottom-up, people-centred, demand-driven, self-selecting and rights-based programme. MGNREGA: The Mahatma Gandhi National Rural Employment (MGNREG) is the largest public employment program in the world. Implementation: By Ministry of Rural Development in India. Legal provision: The scheme is based on MGNREGA Act, 2005 which makes a legislative commitment to provide right to work. Aim: To enhance the livelihood security of people by guaranteeing 100 days of wage-employment in a financial year to a rural household whose adult members volunteer to do unskilled work. |
The Latest Amendment: Prioritizing Water Projects:
- On September, 2025, the Ministry of Rural Development amended Schedule-1 of MGNREGA.
- Focus Area: The amendment emphasizes water conservation and harvesting activities.
- New Provision: A new clause in Paragraph 4 guides the prioritization of works by Gram Panchayats during Gram Sabha meetings.
- Fund Allocation Criteria: Allocation of funds for water-related projects will depend on the groundwater extraction status of each rural block.
- Classification System: The Central Ground Water Board (CGWB) classifies blocks as “over-exploited,” “critical,” “semi-critical,” or “safe”, which determines funding priority.
The new norms:
- Over-exploited blocks (groundwater extraction > 100%): minimum 65% of MGNREGA works’ costs to be spent on water conservation, harvesting, and related works.
- Critical blocks (groundwater extraction 90–100%): also 65% spending on water projects.
- Semi-critical blocks (extraction 70–90%): 40% minimum.
- Safe blocks (extraction ≤ 70%): 30% minimum.
States Expected to Benefit Most:

The MGNREGA amendment prioritizing water conservation and harvesting seeks to combat water scarcity, boost groundwater recharge, enhance farm productivity, and strengthen climate resilience in rural India.
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