Now Reading: State fiscal burden to quadruple under new rural job scheme
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State fiscal burden to quadruple under new rural job scheme
States may need to spend Rs 35,300 crore in FY27 under the new VB G RAM G rural employment scheme, nearly four times the Rs 8,690 crore spent under MGNREGA last year,…
The Story in Brief
States may need to spend Rs 35,300 crore in FY27 under the new VB G RAM G rural employment scheme, nearly four times the Rs 8,690 crore spent under MGNREGA last year, according to a study by Systematix Group. The jump could be severe in West Bengal, Uttar Pradesh, Punjab and Karnataka.
This comes as rural employment is at a 12-year low, with 622.6 million person-days generated in Q1 FY27, 40 per cent lower than last year. Dhananjay Sinha of Systematix said structural factors and fiscal consolidation are behind the decline, and MGNREGA wages are 20-25 per cent below market rates. The new scheme's digital compliance requirements may further reduce actual employment.
The Indian Opinion
The shift from MGNREGA to VB G RAM G is sold as an expansion of rural support, but states will pay much more for possibly fewer jobs. The government must not spin this as progress. With rural incomes already stressed and a weak monsoon expected, the real test will be whether states can handle the financial burden without cutting other welfare, and whether digital hurdles will leave workers with even fewer days.
Source: deccanchronicle.com
This story was synthesised by AI from the source linked above.
