From MGNREGA To VB G RAM G: TDP Cautions Against State Cost Surge

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New Delhi: In a sign of increasing tensions within the ruling NDA coalition, the Telugu Desam Party (TDP), a key partner of the Bharatiya Janata Party (BJP), has expressed worries that the proposed Viksit Bharat Guarantee for Employment and Livelihood Mission – Rural (VB G RAM G) Bill could put a heavy financial burden on states.

The Bill, poised for introduction in Parliament, aims to replace the longstanding Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) of 2005. It promises an enhanced guarantee of 125 days of wage employment per financial year for rural households; weekly wage disbursements; and pauses during peak agricultural seasons to prioritise farming labour availability.

However, a pivotal shift in funding has drawn criticism. Unlike MGNREGA, which was fully funded by the Centre for wages, the new scheme proposes a shared model: 60% from the Centre and 40% from states (with 90:10 for northeastern and Himalayan regions). Andhra Pradesh Finance Minister Payyavula Keshav termed this provision “concerning”, warning that it could impose a heavy load on state exchequers, particularly for financially-strained governments like his own. While affirming TDP’s commitment to supporting and implementing the initiative, Keshav emphasised the need for thorough scrutiny of its details.

Finance department officials in Andhra Pradesh welcomed aspects such as extended employment days and seasonal breaks but echoed worries over the cost-sharing formula.

As an NDA partner governing Andhra Pradesh in alliance with the BJP, TDP’s cautious stance underscores potential challenges for the Centre in garnering unanimous backing, even from allies.

This discussion comes amid broader debates, with Opposition parties decrying the overhaul as a dilution of workers’ rights and an erasure of Mahatma Gandhi’s legacy.

The bill’s progression will be closely watched for its implications on federal fiscal dynamics and rural welfare.

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