Spokesperson: Shri Saptagiri Ulaka: Chairman of the Parliamentary Standing Committee on Rural Development and Panchayati Raj, Shri Saptagiri Ulaka, said that the new framework dismantles the statutory guarantee of work available to rural households and weakens workers’ rights by making employment contingent on pre-approved budgetary allocations rather than actual demand. “Today is the saddest day for the country”, he remarked while referring to the discontinuation of the MGNREGA scheme by the BJP government from today.

The Congress Party launched a sharp attack on the Centre over the notification of the VB GRAMG scheme, saying that it effectively repeals the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) by replacing a demand-driven legal entitlement with a centrally controlled, allocation-based programme.

He said that VB GRAMG fundamentally changes this framework by shifting to a supply-based model in which employment depends on advance budget allocations, approved labour budgets, centrally determined ceilings, state contributions and administrative capacity.

He also criticised the proposed funding pattern under VB GRAMG, saying that the Centre’s share has been reduced to 60 per cent while states would now have to contribute 40 per cent of programme expenditure.

Shri Saptagiri Ulaka argued that under MGNREGA, the Union government bore nearly the entire cost of labour, while material costs were shared between the Centre and the States in a 60:40 ratio, placing only a minimal financial burden on the States. However, under VB GRAMG, labour and material costs would be shared in a 60:40 ratio, which would substantially increase the financial burden on state governments if they are to provide employment.

He said that under the revised scheme, funding structure would disproportionately burden states, particularly poorer ones with higher rural unemployment, forcing them to limit employment generation due to fiscal constraints.

He pointed out that the Centre would first determine a normative state-wise allocation and that any expenditure beyond this limit would have to be borne entirely by the state government. He said that this could significantly increase the effective financial burden on states, citing estimates that Haryana could ultimately bear nearly 89 per cent of the total programme cost and Maharashtra around 88 per cent if they attempted to provide the promised 125 days of employment. Wednesday July 1, 2026