The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) — VB-G RAM G — has become a point of contention just days before its scheduled rollout on July 1. The scheme, which replaces the repealed Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), introduces a 60:40 Centre-state cost-sharing model for wage funding, a significant shift from the fully Centrally funded wage guarantee under MGNREGA. This fiscal restructuring has triggered unease across states, exposing fault lines in India's federal framework.
State Reactions and Fiscal Concerns
Even BJP-ruled states like Bihar and Madhya Pradesh have flagged concerns over the increased wage burden. For states with constrained fiscal space, the obligation to shoulder 40% of wage expenditure could sideline other welfare priorities, especially in rural development. The Congress party has accused the Centre of pushing the reform without adequate consultation, weakening the rights-based character of rural employment. Telangana, governed by the Congress, plans to move the Supreme Court against VB-G RAM G. In contrast, the AAP government in Punjab has notified the scheme, despite the state Assembly passing a unanimous resolution six months ago condemning the scrapping of MGNREGA.
Centre's Defense and Key Features
The Centre has defended VB-G RAM G, emphasizing that it provides a higher number of guaranteed wage employment days—125 days compared to MGNREGA's 100 days. However, the prospect of increased centralisation and conditional funding could dilute the demand-driven essence of the rural job guarantee. The scheme has caused divisions not only within the Opposition but also within the BJP, reflecting deep-seated disagreements over its design.
Federalism and Livelihood Security
Ultimately, the debate is less about the intent of the reform and more about its design. Any durable rural employment initiative must balance fiscal realism with the constitutional commitment to livelihood security. The onus is on the Centre to address states' concerns and review the scheme. Failure to do so could further strain cooperative federalism, which has already been under pressure. As one state official noted, "The shift to a cost-sharing model without adequate consultation undermines the spirit of federal cooperation." The coming weeks will be crucial in determining whether VB-G RAM G can achieve its objectives without exacerbating regional disparities.
