Telugu Desam Party MP Lavu Sri Krishna Devarayalu has raised a critical concern regarding the implementation of the proposed new rural employment guarantee scheme in Andhra Pradesh, pointing to the state's persistent revenue deficit as a major funding hurdle.
Funding Challenge for Andhra Pradesh
Speaking in the Lok Sabha on Thursday, the MP from Narasaraopet addressed the draft law for the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G Ram G), introduced in Parliament on December 16, 2025. This scheme is designed to replace the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
The new legislation proposes a 60:40 fund-sharing model between the Central government and the states. Devarayalu stated that while the reforms are necessary, Andhra Pradesh's financial situation, marked by a continuous revenue deficit since the state's bifurcation in 2014, makes it difficult to contribute the mandatory 40% state share.
"The economic challenges faced by Andhra Pradesh, particularly the continued revenue deficit since 2014 following bifurcation, also need to be factored into the implementation of these reforms," the MP argued. He appealed for continued and enhanced central support to ensure effective scheme implementation, similar to the support that revived 92 centrally sponsored schemes in the state over the past year and a half.
MP Backs Reform, Cites Need for Evolution
Devarayalu expressed support for the VB-G Ram G scheme, calling change a constant in governance. He acknowledged MGNREGA's critical role during distress but emphasized the need for restructuring, better targeting, and reform to keep it effective.
He framed the new proposal as a necessary iteration for 2025, reflecting new economic realities and ground-level feedback. The MP noted that legislators across parties have raised concerns about proliferation, inefficiencies, and limited impact of the existing scheme at the constituency level.
Citing a 2024 Parliamentary Committee recommendation, he mentioned the review of guaranteed work days. Investigations by the Union Government have also revealed instances of non-existent works and wage payments without corresponding work in several districts. Based on this, the government has proposed increasing guaranteed employment from 100 to 125 days.
Five Key Suggestions for a Robust Scheme
Reiterating the need to consider Andhra's deficit, Devarayalu submitted five concrete suggestions to improve the new scheme:
1. Stronger Anti-Fraud Laws: He called for amending the law to clearly deter fraud and ensure accountability, citing that in Andhra Pradesh alone, 11,932 fraud cases involving Rs 82 crore were detected in the last decade, with only Rs 48 crore recovered.
2. Increase Technical Staff: He proposed deploying one technical assistant for every two gram panchayats instead of the current norm of one for four, to reduce incorrect measurement and fraudulent reporting.
3. Reform Wage Indexation: The MP urged reform to ensure proper and timely linkage of wages to inflation, protecting workers' real income.
4. Prioritize Community Assets: While welcoming a shift towards durable asset creation, he urged prioritizing community assets over individual ones, noting the latter's rise from 9.6% in 2014 to 73.3% in 2024.
5. Mandate Social Audits: Devarayalu stressed the need to statutorily mandate independent social audit units in every state to strengthen oversight and transparency.
The MP concluded by extending his support to the bill while urging the Ministry to consider these vital amendments for the scheme's success, especially for states like Andhra Pradesh grappling with structural financial constraints.
