States allocate funds for new rural jobs scheme despite Centre's pending allocation formula
At least 24 States and Union Territories have earmarked funds for the new Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, a rural employment programme. This comes despite the Centre not yet notifying the formula for State-wise normative allocations, which is mandated by Section 4(5) of the Act. States are using their past expenditure under MGNREGA as a baseline, accounting for the additional 25 workdays promised under the new Act (100 to 125 days). States must bear 40% of the scheme's expenditure, with relaxations for northeastern and hilly regions. The Union Budget for 2026-27 has allocated ₹95,652 crore as the Centre's share.
Key Points
- Many States and UTs have allocated funds for the new Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025.
- The Centre is yet to notify the formula for State-wise normative allocations, which is a key pending element mandated by the Act.
- States are currently using past MGNREGA expenditure as a baseline and accounting for an extended 125 days of guaranteed employment.
- States are required to bear 40% of the scheme's expenditure, with exceptions for specific regions.
- The new Act aims to ensure equitable distribution of funds, addressing past complaints from economically weaker States about disproportionately lower funding.
Exam Facts
- New scheme: Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025.
- Section 4(5) of the Act mandates the Union government to determine State-wise allocations annually based on 'objective parameters'.
- States must bear 40% of the scheme's expenditure (except NE and hilly states/UTs).
- Union Budget for 2026-27 set aside ₹95,652 crore as the Centre's share.
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