Indian States Commit Billions to VB-G RAM-G Despite 40% Cost-Sharing Shift
Updated
Updated · The Indian Express · Aug 9
Indian States Commit Billions to VB-G RAM-G Despite 40% Cost-Sharing Shift
1 articles · Updated · The Indian Express · Aug 9
Summary
Tamil Nadu, Karnataka, Telangana and Jharkhand budgeted their full 40% shares for VB-G RAM-G in 2026-27, despite earlier protests against the Centre’s new funding formula.
Under the revised scheme, the Centre now funds 60% and states 40% of rural jobs spending—90:10 for Himalayan and Northeastern states—replacing two decades of full central wage funding.
Tamil Nadu set aside Rs 5,057 crore against a Rs 12,642 crore total and added Rs 100 crore to extend work to 150 days; Karnataka allocated Rs 3,806.61 crore, Telangana Rs 2,550.21 crore and Jharkhand Rs 1,853 crore.
Kerala, Punjab and Himachal Pradesh initially budgeted below the required share—Rs 1,422 crore, Rs 608 crore and Rs 50.94 crore respectively—but are expected to raise allocations during the year.
States appear to be backing the scheme because it has become a de facto wage floor and employment backstop in rural India, making outright resistance fiscally and politically difficult.