New Rural Job Plan Set to Eat Into TG Coffers

Hyderabad:The Telangana government is seriously concerned about the financial burden that the proposed Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) will impose on it, consigning to history Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).

The scheme is implemented across 32 rural districts currently has 30.34 active lakh cards, providing coverage to 56.54 lakh people.

For 2025-26, the government on June 17 had approved works worth Rs 1,800 crore. Under the earlier funding structure, the state was required to contribute 10 per cent of the expenditure, amounting to Rs 180 crore. With the proposed changes, the state's share is expected to rise manifold to `720 crore.

Adding to the cost pressure, the government had enhanced the daily wage rate for MGNREGA workers to Rs 370 per person with effect from April 1. The revised wage places Telangana at the second spot behind Haryana, among the states offering the highest daily remuneration under the scheme.

Panchayat raj and rural development minister Danasari 'Seethakka' Anasuya described the revised cost-sharing formula as worrying, stating that diverting a significantly higher share of state funds would strain development priorities.

She criticised the proposed reduction of the Centre's contribution from 100 per cent to 60 per cent, with the remaining 40 per cent being transferred to the states, terming it unjust and contrary to the spirit of the legislation.

While the change in nomenclature, dropping the name of Mahatma Gandhi from the scheme, has attracted attention, states have raised stronger objections to the substantive alterations proposed in the Bill, including the shift to 60:40 funding pattern from the earlier 90:10 ratio.

The proposal to pause the scheme for two peak agricultural months has also raised concerns. However, it is the Centre's transfer of financial responsibility to cash-strapped states that remains the major point of contention.

Who it covers

The MNREGA scheme is implemented across 32 rural districts, excluding Hyderabad,covering 8,450 gram panchayats.

As of December 16, the scheme had issued 50.18 lakh job cards, covering 1.32 crore individuals.

30.34 lakh cards remain active, providing coverage to 56.54 lakh people.

New proposals

The G RAM G Bill proposes increasing guaranteed workdays from 100 in the MNREGA to 125.

It introduces fixed state-wise budgets, altering the scheme’s demand-driven nature.

Employment would be limited to areas notified by the Centre

Allocations to be capped, restricting flexibility to respond to local needs.

Under MNREGA, Centre bore 100% labour wages and 75% material costs, effectively resulting in a 90:10 cost-sharing arrangement.

Under G RAM G, the sharing would be 60:40, making it comparable to other centrally sponsored schemes and diluting its statutory character.