At least three Indian states, including two governed by the BJP, have expressed worries regarding the increased financial burden imposed on them by the new rural employment program, the Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G RAM G), set to commence on July 1.

Under the VB-G RAM G, states are now required to shoulder 40% of the total expenditure, contrasting sharply with the previous Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), where the central government covered 100% of the wage expenses. In MGNREGA, states were only responsible for a portion of the material costs, which accounted for 10% of the overall budget.

This information was revealed by the Union Rural Development Ministry in response to a Right to Information (RTI) application filed by Chakradhar Buddha from the National Campaign for People’s Right to Information (NCPRI). Mr. Buddha sought records pertaining to meetings and consultations held by the Union Government regarding transitions from MGNREGA to the new scheme.

The government’s response covered only 13 states. Among these, five states demanded a revision of wage rates, and four voiced apprehensions regarding the provision of 60 non-working days during the peak agricultural season. Nearly all states reported delays in wage payments and sought expedited clearance of dues.

The states of Bihar, Madhya Pradesh, and Jharkhand explicitly requested a reconsideration of the updated funding model. Under the interim allocations for VB-G RAM G, Bihar is expected to pay ₹4,477 crore, which, according to NREGA Sangharsh Morcha’s analysis, is insufficient to fulfill the commitment of providing 125 days of work. Their calculations indicate that Bihar will actually need ₹15,939 crore to meet this goal.

Similarly, Madhya Pradesh is facing a burden of ₹4,168 crore, sufficient only for 43 days of work. To meet the target of 125 days, the state would require ₹20,037 crore. Jharkhand is required to contribute ₹1,804 crore under the current allocation, adequate only for 41 days of work, while it will need to allocate ₹9,293 crore for the complete 125-day commitment. Unlike Bihar and Madhya Pradesh, Jharkhand, another BJP-ruled state, indicated that it would find it challenging to cover the 40% share during the post-legislative consultation.

Out of the 13 states, five demanded an increase in rural workers’ wages, as the existing MGNREGA wages considerably lag behind market rates. Bihar proposed raising wages from the current ₹255 to ₹413, while Jammu & Kashmir sought an increase from ₹272 to ₹311. Jharkhand and Punjab stressed that wages should reflect competitive market conditions, and Uttarakhand highlighted the tough work conditions, proposing a compensatory wage increase.

Additionally, at least four of the 13 states opposed the proposed 60-day blackout period during peak agricultural times. While the government endorsed this measure as a means to enhance labor availability, activists criticized it, stating it undermines workers’ bargaining power. Notably, Punjab, heavily reliant on agriculture, raised concerns along with Karnataka and Telangana—both governed by Congress—requesting a review of this policy.

Almost all states have pointed out persistent delays in the central government’s clearance of wage and material bills, urging that these issues be ameliorated under the new VB-G RAM G scheme.