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- VB G RAM G Bill Benefits; UP Maharashtra Bihar Funding CG Funding Ratio | SBI Report
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President Draupadi Murmu has given his approval to this bill on December 21, after which it has now become a law.
The new law ‘Vikas Bharat Guarantee for Employment and Livelihood Mission’ (VB-G RAM G), which guarantees employment in rural areas, will further strengthen the economic condition of the states.
According to the latest report by State Bank of India (SBI), despite the change in funding pattern, states are collectively expected to make a net profit of around Rs 17,000 crore.
New law will provide more work
The government said that under the new law, every rural family will now be guaranteed 125 days of work in a year, which was earlier 100 days. With this, families living in villages will get more work and their economic security will be strengthened.
Under Section 22 of the Act, the expenses of this scheme will be jointly borne by the Central and State Governments. In normal states, the distribution of expenditure will be 60 percent between the Center and 40 percent of the state.
At the same time, in the North-Eastern states, hilly states and union territories like Uttarakhand, Himachal Pradesh and Jammu and Kashmir, the central government will bear 90 percent of the expenditure.
According to Section 6, state governments will be able to control the work awarded under the scheme for a maximum of 60 days in a year during peak farming periods, such as sowing and harvesting.
Under MNREGA, rural unskilled people were guaranteed employment for 100%, also know about MNREGA here…
60:40 funding ratio will not increase the burden on states
The biggest debate regarding this law was on its funding structure. According to the new rules, the distribution of funds between the Center and the states will be in the ratio of 60:40. However, this rule will be different for North-Eastern States, Union Territories and Himalayan States. The SBI report says that some people are considering this as an additional financial burden on the states, but the data shows that in reality the states will benefit from it.
UP, Maharashtra and Bihar benefit the most
SBI has compared the new system with the MNREGA allocation of the last 7 years (FY19-FY25). According to the report:
- Uttar Pradesh and Maharashtra are expected to benefit the most.
- Bihar, Chhattisgarh and Gujarat are also included in the list of states with big benefits.
- There may be a slight decline in some states like Tamil Nadu, but if we remove the specific figures of last year, the situation is stable there too.
States will not have to take loans
The report rejects claims that the 60:40 ratio will force states to take more loans. According to SBI, this fear is due to misunderstanding of the financial position of the states. In the new structure, the distribution of funds will be on the basis of ‘equity and efficiency’, due to which both developed and backward states will be able to get better funds.
States have a chance to increase their share
The SBI report also suggests that state governments can further improve the results of this mission by effectively utilizing their 40% contribution. This will not only increase employment, but will also speed up development of rural infrastructure.
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Read this news also…
President’s approval to ‘Jee Ram Ji’ bill: Chidambaram said – Removing Gandhi’s name from MNREGA is like murdering him again.
President Draupadi Murmu today on Sunday approved the Developed India-Employment and Livelihood Mission (Rural) Guarantee Bill, 2025 (VB-G-RAM-G). Now this has become law. The new law will replace the 20-year-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
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