FEDERAL CONTRIBUTION OF FUNDS UNDER VB-G RAM G

FEDERAL CONTRIBUTION OF FUNDS UNDER VB-G RAM G

The primary objective of the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) VB-G RAM G Act, 2025, is to align the rural development framework with the national vision of Viksit Bharat @2047 by providing an enhanced statutory wage employment guarantee of one hundred and twenty-five days in each financial year to such rural households whose adult members volunteer to undertake unskilled manual work, thereby enabling them to participate more effectively in the expanded livelihood security framework. As Viksit Bharat G RAM G retains the demand driven nature of the program, the workers are entitled to avail the guarantee of 125 days given under the Act.

As per the Sub-section (4) of Section 22 of the Act, the Central Government shall determine the State-wise normative allocation for each state based on objective parameters as may be prescribed by the Central Government.

Further, as per Section 22 of the Act, the Scheme implemented under the Act shall be a Centrally Sponsored Scheme and the fund-sharing pattern between the Central Government and the State Government shall be 90:10 for the North-Eastern States, Himalayan States and Union Territory (Uttarakhand, Himachal Pradesh and Jammu and Kashmir) and 60:40 for all other States and Union territories with legislature. Here it is stated that presently, many Centrally Sponsored Schemes (CSS) across sectors are being implemented on the 60:40 sharing model. The 60:40 pattern adopted under this Act is therefore consistent with the broader framework of Centrally Sponsored Schemes. This model promotes cooperative federalism by making States active partners in rural development.

For the financial year 2026–27, a Central share provision of ₹95,692.31 crore has been made for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) , representing the largest allocation ever, for rural employment progamme at Budget Estimate Stage. With the inclusion of the corresponding estimated State share, the total programme outlay is likely to exceed ₹1.51 lakh crore, which is expected to significantly accelerate rural transformation, large-scale employment generation and income enhancement in rural areas.

In addition, the Act also provides that in the event of natural disasters, pandemics, or other extraordinary circumstances, State Governments may recommend special operational relaxations to the Centre. The Central Government is empowered to allow expansion of permissible works, relaxation in documentation procedures, and temporary enhancement of employment provisions in such situations. The framework is thus responsive, flexible, and sensitive to emerging needs.

This information was given by the Minister of State for Rural Development Shri Kamlesh Paswan in a written reply in the Rajya Sabha today.