The Union government's plan to overhaul India's flagship rural employment guarantee scheme is facing stiff opposition not just from the Opposition but even from a key BJP ally. The Telugu Desam Party (TDP) is unhappy with the plan to transfer costs of a centrally sponsored scheme to states, according to multiple news reports.
With the Centre’s Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G Ram G) Bill, 2025, likely to put a higher financial burden on the States’ exchequer with its provision to share funding of the scheme, Andhra Pradesh’s finance minister has reportedly said they will “support and implement it”, though the sharing of funding is “concerning” and “would put a burden on the state”.
How new VB-G RAM G bill is different from existing MNREGA act?
Though the nomenclature G RAM G instead of Mahatma Gandhi in the MGNREGA has drawn much attention, it is the crucial changes in the scheme itself that are being opposed by several parties. The new Bill plans a 60:40 fund-sharing pattern between the Centre and the states, respectively.
The VB-G RAM G Bill proposes to replace the existing MGNREGA. It has created an uproar in the Opposition benches over the dropping of Mahatma Gandhi's name from India's flagship rural employment scheme. However, the Bill has also faced concerns from a key BJP ally, the Chandrababu Naidu-led TDP. It warned that the changes could strain state finances.
Are TDP's concerns justified?
The Telugu Desam Party (TDP), an NDA partner, has expressed concern over the funding pattern proposed in the Viksit Bharat G RAM G scheme, according to multiple news reports.
The TDP is the biggest NDA partner in Andhra Pradesh, with party leader Chandrababu Naidu the chief minister. With 16 Lok Sabha MPs, the TDP is also the second-biggest NDA constituent at the Centre after the BJP.
"This new funding pattern will put an obvious burden on the state government. It is of great concern, especially for a cash-strapped state like Andhra Pradesh," The Economic Times quoted a senior state minister of the TDP as saying. The minister spoke to the business daily on the condition of anonymity. "This funding pattern makes the rural employment guarantee scheme like any other central scheme," the minister added.
Andhra’s Finance, Planning, and Legislative Affairs Minister Payyavula Keshav, speaking to The Indian Express also outlined the funding pattern of the new scheme said the state government will study the provisions of the Bill, and that it will support and implement it. “Definitely, the funding sharing is concerning. It would put a lot of burden on the state if we have to divert a huge amount of funds as our share to fund the scheme. We have not gone through the full details of the scheme yet,” the publication reported quoting the minister.
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