Congress Raises Alarm Over VB-G RAM GA Scheme
In a statement ahead of the July 1 launch, senior Congress leader Jairam Ramesh expressed serious concerns about the financial and administrative viability of the VB-G RAM GA scheme. The scheme, which aims to provide rural employment guarantees, has drawn criticism from multiple states, including those governed by the Bharatiya Janata Party (BJP), over the additional fiscal strain it places on state exchequers.
BJP-Ruled States Also Oppose Burden
Ramesh pointed out that even BJP-led state governments have formally objected to the scheme, calling it an unfunded mandate that forces states to bear costs beyond their budgets. He cited examples from states like Uttar Pradesh, Madhya Pradesh, and Gujarat, where officials have reportedly raised concerns about the lack of central funding to support the expanded employment guarantee.
Details of the VB-G RAM GA Scheme
The VB-G RAM GA scheme, set to launch on July 1, 2026, is designed to extend the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) model to additional rural areas with a focus on asset creation. However, critics argue that the implementation lacks clarity on cost-sharing between the centre and states. According to sources, the scheme mandates states to contribute 40% of the total outlay, a significant increase from the existing MGNREGA structure where the central government bears 100% of the wage component.
Financial Implications for States
Ramesh emphasized that the new scheme could destabilize state finances, particularly for states already grappling with debt. He noted that Telangana, Karnataka, and Kerala have also voiced concerns. The estimated annual cost of the scheme is projected at Rs 1.2 lakh crore, with states expected to contribute nearly Rs 48,000 crore. This additional burden, Ramesh argued, could force states to cut spending on health, education, and infrastructure.
Administrative Hurdles
Beyond finances, Ramesh flagged administrative challenges, including the lack of trained personnel, delays in fund releases, and inadequate monitoring mechanisms. He warned that without proper planning, the scheme could lead to corruption and inefficiency, undermining its intended benefits.
Political Reactions and Next Steps
The Congress party has demanded a review of the scheme's funding model and called for a meeting with the Prime Minister to discuss state concerns. Meanwhile, the central government has defended the scheme, stating that it will boost rural employment and create durable assets. As the launch date approaches, the political debate over the VB-G RAM GA scheme is expected to intensify.
