Overview
- The Union Budget 2026–27 assigns Rs 95,692.31 crore to the new VB‑G RAM G law and Rs 30,000 crore to MGNREGA during a transition period, even though the Finance Minister did not mention the new scheme in her speech.
- Officials say the Rs 30,000 crore under the MGNREGA head will address carryover liabilities and ongoing works until VB‑G RAM G is operational, which has yet to be formally notified.
- VB‑G RAM G shifts financing to a 60:40 Centre–state split for most states, with a 90:10 share for Northeastern and Himalayan states and full central funding for Union Territories without legislatures.
- Activists and analysts argue the allocation cannot support the promised 125 workdays, estimating a total need of about Rs 3.84 lakh crore and a Centre share near Rs 2.30 lakh crore, far above the current provision.
- States are assessing sizable new liabilities and seeking clarity on state‑wise normative allocations and transition rules, as opposition parties and civil‑society groups stage protests and demand details on implementation.