TDP flags cost-sharing in 'VB-G Ram G' bill

Telugu Desam Party (TDP), a key NDA ally, has expressed its concern over the funding pattern proposed in the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G Ram G) Bill, which will replace the Mahatma Gandhi National Rural Employment Guarantee Scheme.

The party, which is in alliance with BJP at the Centre and Andhra Pradesh, has pointed out that the new legislation will put a financial burden on the state as it proposes a 60:40 fund sharing pattern between the central government and the state governments for the rural employment guarantee scheme. A senior state minister from TDP, who did not wish to be identified, told ET, “This new funding pattern will put an obvious burden on the state government. It is of great concern, especially for a cash-strapped state like Andhra Pradesh. This funding pattern makes the rural employment guarantee scheme like any other central scheme.”

Section 22 (2) of VB-G Ram G Bill says, “For the purposes of this act, the fund sharing pattern between the Centre and state governments shall be 90:10 for the northeastern states, Himalayan states, and Union territories (Uttarakhand, Himachal Pradesh, and Jammu and Kashmir), and 60:40 for all other states and Union territories with legislature.” This is unlike the MGNREGA where the entire wage bill was borne by the Centre.


When contacted, TDP MP and party’s leader in Lok Sabha Lavu Sri Krishna Devarayalu said the party was studying the bill in detail. According to sources, the party would want the bill to be referred to a parliamentary standing committee for further examination. Apart from the funding pattern, the bill also has new provisions like an employment guarantee for 125 days up from the current 100 days, weekly wage payouts and pause in employment guarantee during peak agricultural seasons.