Centre’s rural jobs scheme overhaul faces pushback from BJP states too

New Delhi: Several states, including two governed by the Bharatiya Janata Party, have expressed strong objections to the financial burden imposed under the Centre's new 'Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission' (VB-GRAM), which is set to replace the Mahatma Gandhi National Rural Employment Guarantee Scheme from July 1.

Under the new programme, expenditure will be shared between the Centre and states in a 60:40 ratio. Under the existing employment guarantee scheme, the Centre bears the entire wage cost, while states are responsible only for material expenses, amounting to about 10% of the total budget. States argue that the revised funding pattern will significantly increase their financial obligations.

According to information obtained by the National Campaign for People's Right to Information through the Right to Information Act, Bihar, Madhya Pradesh and Jharkhand have requested the Centre to reconsider the funding model. Estimates indicate Bihar's liability would rise from Rs 4,477 crore to Rs 15,939 crore, Madhya Pradesh's from Rs 4,168 crore to Rs 20,037 crore, and Jharkhand's from Rs 1,804 crore to Rs 9,293 crore for providing 125 days of employment.

The Union Rural Development Ministry shared responses from 13 states through RTI records. Five states demanded higher wage rates, arguing that existing wages remain below prevailing market rates. Four states opposed the provision suspending employment for 60 days during agricultural seasons. Most states also complained about delays in wage payments.

Sikkim and Uttarakhand, which currently receive funds under a 90:10 Centre-state ratio, also sought revisions. Uttarakhand urged the Centre to continue bearing the full wage cost, citing the state's difficult geographical conditions.