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From Rights to Rhetoric: States Push Back Against New VB-G RAM G Rural Jobs Law

VB-G RAM G will guarantee only centralisation, financial stress on States: Congress

By Arjun MehtaPublished 28 June 2026· 2 min read
From Rights to Rhetoric: States Push Back Against New VB-G RAM G Rural Jobs Law
From Rights to Rhetoric: States Push Back Against New VB-G RAM G Rural Jobs Law

As the Centre prepares for the July 1 rollout of the Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission, opposition from within the states and the Congress party threatens to derail the transition from the legacy MGNREGA framework.

The transition from the two-decade-old Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) to the new Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G) is hitting a wall of administrative resistance. With the July 1 deadline looming, the Centre’s plan to replace the erstwhile rural jobs scheme is being met with alarm, not just from the opposition, but from the very states expected to implement it.

The Friction Over Finances

Congress general secretary Jairam Ramesh has been vocal in his critique, framing the new law as a tool for "extreme centralisation." Beyond the ideological clash, the practical concerns are mounting. Reports indicate that BJP-governed states—including Madhya Pradesh, the home state of Union Rural Development Minister Shivraj Singh Chouhan, as well as Bihar and Uttarakhand—have raised formal objections regarding the financial burden of the new mandate.

State governments are warning that the cost-sharing structure of the VB-G RAM G will force them into a period of acute financial stress. While the Centre promises 125 days of statutory wage employment, the infrastructure required to scale this up is proving expensive. At least five states have already petitioned the Centre to hike the wages for rural workers, arguing that the current framework fails to account for inflation and the sheer scale of the labor pool.

A System Under Strain

The legislative journey of the bill was marked by controversy, passing through the Lok Sabha amid significant uproar. Critics, including those from the Congress, have pointed out that the bill was bulldozed through Parliament without the oversight of the Parliamentary Standing Committee on Rural Development. The concern is that by bypassing these checks, the government has created a "flawed" substitute that lacks the legal guarantees of its predecessor.

Furthermore, the scheme’s design has drawn fire for a "blackout period"—a window during the peak agricultural season where rural work programs under the new mission will effectively pause. Four state governments have formally challenged this, arguing that such a move will leave the most vulnerable rural households without income support during critical months.

Why It Matters

This standoff represents a deeper pivot in Indian federalism. For years, the MGNREGA acted as a floor for rural welfare, underpinned by a legal right to work. By replacing it with the VB-G RAM G, the government is attempting to move toward a more "outcome-oriented" model, yet the pushback suggests that the fiscal architecture of this transition remains fragile. The pattern here is clear: whenever the Centre attempts to overhaul grassroots welfare, the burden inevitably falls on the states. If the states remain unconvinced and financially squeezed, the "guarantee" at the heart of the new mission may exist only on paper, setting the stage for the nationwide agitation already planned by the Congress for January 10.

By Arjun Mehta
National Affairs Correspondent

Arjun Mehta reports on government, policy and Parliament for PoliticalPedia, in English and Hindi.