The Centre has shifted the funding pattern of the National Rural Employment Guarantee Scheme (now VB-G RAM-G) from 100% central funding to a 60:40 Centre-State split (90:10 for Himalayan/Northeast states). This marks a major fiscal federalism change, with states allocating full 40% despite political opposition. Essential for Prelims (ratio, scheme name) and Mains (fiscal federalism, rural wage floor).
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1-Minute Revision
- ›General Funding Split: 60:40 (Centre:State)
- ›Himalayan/Northeast Split: 90:10 (Centre:State)
- ›Target this Data: 60:40 Centre-State funding split (general), 90:10 (Himalayan/Northeast), 100% Centre (UTs without legislature).
- ›Target this Nodal Body: Ministry of Rural Development (implements VB-G RAM-G).
- ›Target this Legal Point: MGNREGA Act, 2005 (now under new name VB-G RAM-G). Scheme provides 100 days of wage employment.
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