The Centre has overhauled MGNREGA with VB-G RAM G, shifting a major financial burden to states. States’ expenditure is projected to skyrocket six-fold from ₹7,700 crore (2024-25) to at least ₹51,000 crore (2026-27) due to a new 60:40 cost-sharing pattern. This move, effective July 1, 2026, has raised serious concerns among states about fiscal sustainability.
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- ›States' Expenditure Increase: 6-fold (₹7,700 cr → ₹51,000 cr)
- ›New Cost-Sharing Ratio: 60:40 (Centre:State)
- ›Target this Data: States' expenditure increase from ₹7,700 crore (2024-25) to ₹51,000 crore (2026-27) - nearly six-fold.
- ›Target this Nodal Body: Ministry of Rural Development (implementing VB-G RAM G).
- ›Target this Legal Point: MGNREGA Act 2005 replaced by VB-G RAM G (Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin) effective July 1, 2026.
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