Now Reading: New rural job scheme may quadruple states’ costs, study says
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New rural job scheme may quadruple states’ costs, study says
A transition from MGNREGA to the new VB G RAM G rural employment scheme could quadruple state governments' fiscal burden to around Rs 35,300 crore in FY27, according to a report by…
The Story in Brief
A transition from MGNREGA to the new VB G RAM G rural employment scheme could quadruple state governments' fiscal burden to around Rs 35,300 crore in FY27, according to a report by Systematix Group. States like West Bengal and Uttar Pradesh may see allocations rise 24 times and 21.3 times respectively. The study warns rural employment has weakened, with person-days in Q1 FY27 down nearly 40% year-on-year and at a 12-year low.
Congress leader Jairam Ramesh alleged a 49.94% decline in person-days in July, the first month under VB G RAM G, calling it 'rozgar chori'. The government claims the scheme offers a guarantee of 125 days of work and increased central oversight, but critics say additional digital compliance and budget-driven funding limit actual employment.
The Indian Opinion
The Congress calls VB G RAM G 'rozgar chori' while the government defends it as reform. Yet both sides ignore the structural decline in rural jobs over a decade, not just one month. MGNREGA itself gave only 43 days of work per person on average. The real test is whether the new scheme's 125-day promise and tech-driven delivery can reverse a 12-year low in person-days, or if budget caps and biometric hurdles will deepen the fall. Watch the Q2 person-day data closely.
Sources (2): deccanchronicle.com, nationalheraldindia.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
