Just days before the launch of the Centre's new Viksit Bharat–Guarantee for Rozgar and Aajeevika Mission (Gramin), commonly known as VB-G RAM G, two BJP-ruled states have reportedly expressed concerns over the additional financial burden they may have to shoulder under the revised rural employment framework.
The scheme is scheduled to come into effect on July 1, replacing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). While the new framework promises a higher employment guarantee of 125 days for eligible rural households, the revised funding mechanism has become a point of discussion among several state governments.
What Is VB-G RAM G?
The VB-G RAM G Act is the Centre's new rural employment and livelihood programme aimed at strengthening employment opportunities and improving rural infrastructure. It replaces MGNREGS and introduces several structural changes, including an increase in the guaranteed number of workdays from 100 to 125 per financial year.
The Ministry of Rural Development has stated that the new framework is designed to improve implementation efficiency, strengthen accountability, and ensure better planning of rural development projects.
Why Are States Concerned?
According to reports, the primary concern relates to the revised cost-sharing formula. Under the new Act, many states are expected to contribute a larger share of programme expenditure compared with the earlier framework.
State officials fear that the increased contribution could place additional pressure on already stretched budgets, particularly when multiple welfare and infrastructure programmes are being implemented simultaneously. Analysts say the revised financial model may require states to make difficult budgetary adjustments in order to sustain the programme effectively.
Centre Continues Rollout Preparations
Despite the concerns, preparations for the nationwide rollout are moving ahead. The Ministry of Rural Development has deployed more than 100 Area Officers across the country to assist state governments during the transition.
According to the government, 27 States and Union Territories have already made budgetary provisions, and thousands of officials have received training to support implementation once the Act comes into force.
States Continue Discussions
As the implementation date approaches, several states are continuing consultations on the financial implications of the new programme. Some governments have sought greater clarity on funding commitments and operational guidelines before full implementation.
At the same time, other states have proceeded with notifying the scheme despite previously expressing reservations, indicating that discussions between the Centre and state governments remain ongoing.
What Happens Next?
The VB-G RAM G Act is scheduled to become operational across India on July 1. Over the coming weeks, attention is expected to focus on how effectively states implement the new framework and whether additional financial assistance or policy adjustments are introduced to address concerns raised by state governments.
The success of the programme will depend not only on expanding rural employment opportunities but also on maintaining a cooperative fiscal partnership between the Centre and the states.