The Congress party on Saturday warned that the proposed VB-G RAM G scheme would guarantee only centralisation of power and impose severe financial stress on states. Senior Congress leader Jairam Ramesh said that even BJP-governed states like Madhya Pradesh, Bihar, and Uttarakhand have opposed the huge additional expenditure burden that the scheme would levy on states.
Congress criticises centralisation push
Speaking to media, Ramesh argued that the scheme undermines the federal structure by concentrating decision-making and funding control at the Centre. He claimed that states would be forced to bear disproportionate costs without adequate fiscal compensation. The Congress leader cited internal documents suggesting that the scheme's implementation could increase state expenditure by up to 15% in the initial years.
BJP-ruled states also oppose
According to Ramesh, opposition to the scheme is not limited to non-NDA states. He pointed out that BJP-ruled Madhya Pradesh, Bihar, and Uttarakhand have formally expressed concerns over the financial implications. These states fear that the additional burden would strain their budgets, affecting welfare programmes and developmental projects. Ramesh quoted a senior BJP leader from one of these states as saying, 'The scheme sounds good on paper but will break our backs financially.'
Impact on state finances
The Congress leader estimated that the scheme could cost states an extra ₹2 lakh crore collectively over five years. He said this would force states to either cut spending on health and education or raise taxes, both of which would hurt the common citizen. Ramesh called for a thorough review and state-wise impact assessment before any implementation.
