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Centre Champions VB–G RAM G With 125-Day Job Guarantee, Faces Pushback Over 60:40 Funding

The Centre frames the 60:40 funding shift as cooperative federalism, with a nationwide rollout targeted for April 1.

Overview

  • Union minister Shivraj Singh Chouhan led public launches in Tripura, pitching the new law as a jobs and rural infrastructure drive and inaugurating development projects.
  • The government told Parliament the 60:40 Centre–state funding model would not affect the scheme’s guarantee, contrasting it with MGNREGA’s much lower state share.
  • Budgetary backing cited by the Centre includes ₹95,600 crore in the Union Budget, a total outlay of ₹1,51,282 crore this year, an additional ₹55,000 crore via the Finance Commission, and ₹10 lakh crore over five years.
  • The Act guarantees 125 days of work per rural household and adds safeguards such as unemployment allowance if work is not provided, interest on delayed wages, higher administrative funds from 6% to 9%, and digital tracking.
  • Opposition-ruled states and civil-society groups argue the higher state burden could weaken rights-based guarantees and are pressing for protections on job cards, on-demand work, and timely payments.