Explained: Why States Are Opposing the New VB-G RAM G Scheme
The Union government's new rural employment scheme, Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G), is set to replace the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from July 1. The Ministry of Rural Development released draft rules for the scheme on May 22, inviting stakeholder feedback within a month.
VB-G RAM G marks a fundamental shift from MGNREGA's 'demand-driven' model to a 'supply-driven' framework. Under the new scheme, allocations are capped within a fixed budget determined by the Centre using 'objective parameters.' While the guaranteed workdays increase from 100 to 125, the financial burden on states rises significantly — from 10% to 40% of total expenditure. Previously, the Centre bore 100% of labour wages and 75% of material costs, effectively a 90:10 cost share.
Another major change is Section 5(1), which empowers the Centre to notify specific rural areas for implementation, departing from MGNREGA's universal coverage. The scheme also introduces a blackout period during peak agricultural seasons to 'facilitate availability of labour.'
States have raised several objections. Madhya Pradesh, Bihar, and Jharkhand — including two with BJP-led governments — questioned the financial model that now requires states to shoulder 40% of costs. Five states demanded revised wage rates, and four opposed the 60-day blackout period. Nearly all states highlighted delays in wage and material payments, urging the Centre to ensure timely clearance. For instance, Bihar sought a wage increase from ₹255 to ₹413, while Jammu & Kashmir asked for a raise from ₹272 to ₹311. Jharkhand and Punjab argued for market-linked wages, and Uttarakhand cited difficult terrain requiring compensatory hikes.
Congress-ruled states like Punjab, Karnataka, and Telangana sought reconsideration of the blackout period. Academics and activists from the NREGA Sangarsh Morcha have flagged concerns about disproportionate central control. The draft rules allow the Centre to use 'objective parameters' based on the 16th Finance Commission for inter-state fund distribution, but the exact methodology remains at the Centre's discretion. Additionally, a portion of allocations will be tied to 'performance criteria' such as timely implementation, further centralising authority.
The scheme thus represents a significant centralisation of rural employment policy, shifting from a rights-based entitlement to a centrally managed programme with reduced state autonomy. As states voice their opposition, the final shape of VB-G RAM G remains uncertain.
