India
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States face six-fold rise in rural employment scheme expenditure
The Hindu··2 Jul
An analysis showed states may spend at least Rs 51,000 crore on the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) in 2026-27, up from about Rs 7,700 crore in 2024-25 under MGNREGA. The scheme replaced MGNREGA on July 1. The Centre made an interim allocation of Rs 95,692 crore but states bear costs beyond normative allocations.
Prism
What It Means For You
- Rural job scheme access depends on state budgets under new funding rules.
- Higher state spending could affect other welfare programmes in your region.
- Wage rates and work availability may vary by state under normative allocations.
What's Happening
- VB-G RAM G replaced MGNREGA on July 1, 2026.
- States may spend Rs 51,000 crore versus Rs 7,700 crore in 2024-25.
- Centre allocated Rs 95,692 crore interim funding for 2026-27.
Policy Context
- MGNREGA operated on a demand-driven model since 2005.
- The new scheme shifts more financial burden to state governments.
- Several states flagged concerns before the July 1 rollout.
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