VB GRAM G vs MNREGA: Which burdens States more? | In Focus Podcast
This podcast episode examines the transition from the MGNREGA to the new VB-G RAM G welfare scheme in India. It highlights the increase in guaranteed employment days alongside a significant rise in the financial burden placed on state governments.
Why it matters
The shift in funding responsibilities between central and state governments has major implications for rural welfare and fiscal federalism.
The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (or VB-G RAM G) has replaced the 21-year-old Mahatma Gandhi National Rural Employment Guarantee Act (or MGNREGA).
The VB-G RAM G Act provides a statutory guarantee of 125 days of wage employment per financial year to rural households whose adult members volunteer for unskilled manual work (up from 100 days under MGNREGA). However, under the new system, the States’ contributions to the scheme will increase by 300%.
In this episode we discuss how this change reflects on Indian welfare policy, and more.
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