New Rural Jobs Scheme to Prioritize Big, Poor States with Higher Funding
The government's new rural jobs scheme, Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G), set to replace MGNREGA from July 1, will allocate higher funds to larger, poorer States. Draft rules propose using the 16th Finance Commission's horizontal devolution formula, which prioritizes States based on per capita GSDP distance. Unlike MGNREGA's 100% Centre-funded wage system, VB-G RAM G introduces a 60:40 Centre-State shared wage responsibility. From the second year, a portion of funding will also be based on 'performance criteria' such as timely wage payments and work completion.
Key Points
- The new VB-G RAM G scheme will replace the 20-year-old MGNREGA from July 1.
- Funding allocation to States will be based on the 16th Finance Commission's horizontal devolution formula, prioritizing poorer States.
- The scheme introduces a shared wage responsibility between the Centre and States at a 60:40 ratio, unlike MGNREGA's 100% central funding.
- A part of the allocation from the second year will be based on 'performance criteria' including timely wage payments and compliance with social audits.
- The draft rules are open for public feedback until June 21.
Exam Facts
- New scheme name: Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G).
- Replaces: Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
- Allocation formula: Based on 16th Finance Commission indicators.
- Centre-State wage ratio: 60:40 for most States.
- Highest weightage in devolution formula: GSDP Distance (42.5%).
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