VB-G RAM G vs MGNREGA: States’ expenditure could go up six-fold from ₹7,600 cr to ₹51,000 cr
The new Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G) has replaced MGNREGA, shifting a larger financial burden onto Indian states. Analysis suggests this transition could increase state expenditure by up to 600% compared to previous years.
Why it matters
Exposes potential fiscal strain on state governments due to changes in federal employment guarantee funding models.
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), which completely overhauls the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), came into force on July 1, despite serious concerns raised by many States.
The framing focuses heavily on the financial burden and concerns raised by states against the central government's policy.
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