After row over MNREGA name change, Union Budget 2026 announces launch of new scheme in name of Mahatma Gandhi

NEW DELHI: The Union Budget 2026 announced the launch of a new initiative in the name of Mahatma Gandhi days after it came under flak for its decision to change the name of MNREGA (Mahatma Gandhi Rural Employment Guarantee Act) to VB-G RAM G (Viksit Bharat Guarantee for Employment and Livelihood Mission (Rural) Bill).

The Union Budget 2026 announced the launch of the Mahatma Gandhi Gram Swaraj Initiative to strengthen khadi, handloom and handicrafts through global market linkage, branding, training, skilling and quality improvements.




Finance minister Nirmala Sitharaman also announced a dedicated initiative for sports goods manufacturing and innovation in equipment design and material sciences for high quality, affordable sports goods.

These measures aim to boost rural industries, enhance global market linkage, and support youth and artisans, while the broader plan to revive 200 legacy industrial clusters underscores the scale of intended economic revitalisation.

Criticising the Budget, Tharoor said welfare measures were not specified, except for the reference to the Mahatma Gandhi Gram Swaraj Yojana.

"What is interesting is that they took away Mahatma Gandhi's name from the Rural Employment Guarantee Scheme and applied it to another alleged village development scheme. I'd like to see what exactly comes out of it and what kind of allocations it has," he said.

"Some of these conversations perhaps need to await the full budget document," he added.

Tharoor said he was not sure whether the finance minister had paid attention to the issues that voters and politicians usually focus on.

"For example, there was absolutely nothing for the middle class or the lower middle class that one could hear," he said.

Tharoor also asked why there was no clarity given on whether the G RAM G Act would be given adequate financing. He said he was surprised not to hear his state mentioned more often in the Budget speech.

"It was also short on the kind of couplets from Thiruvalluvar we got used to hearing not only from Nirmala ji but even from the prime minister and other leaders, the vice president and others who used to love quoting Thiruvalluvar. Here's an election opportunity in Tamil Nadu, a few months away. No Thiruvalluvar in the speech. I was surprised," he said, taking a swipe at the government.

The Centre recently enacted the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025 replacing the Congress-era MGNREGA, the Mahatma Gandhi National Rural Employment Guarantee Act, 2005. The move drew sharp criticism from the opposition parties which alleged that the BJP-led NDA government was allergic to the name of Mahatma Gandhi. The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Act, 2025 represented a comprehensive statutory overhaul of MGNREGA, aligning rural employment with the long-term vision of Viksit Bharat 2047, while strengthening accountability, infrastructure outcomes and income security.