VB-G RAM G: State to push for revised minimum wages, seek 80:20 funding model
The Karnataka government is challenging the central government's 60:40 funding model for the new VB-G RAM G employment scheme, advocating for an 80:20 split. State officials argue that the current model places an excessive fiscal burden on states and are seeking adjustments to minimum wage calculations.
Why it matters
This dispute reflects ongoing federal-state fiscal tensions in India regarding the implementation of national welfare programs.
With the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) Act (VB-G RAM G), 2025, set to roll out nationwide from July 1, the Karnataka government is preparing to raise concerns over the 60:40 fund-sharing model, minimum wages, the proposed 60-day pause window, and what it sees as inadequate powers being granted to States under the draft rules.
The article presents the state government's grievances while acknowledging the central government's budget allocations.
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