NEW DELHI: As the Centre prepares to launch the new rural employment guarantee scheme, VB-G RAM G, which will replace MGNREGA from July 1, 25 states have already allocated their share of funds for the programme, government sources said.
The development was shared by the Union Rural Development Ministry with the Parliamentary Standing Committee on Rural Development and Panchayati Raj, which convened on Wednesday.
According to sources, Rohit Kansal, Secretary in the Rural Development Ministry, informed the committee that 25 states have allocated funds for the VB-G RAM G programme and that all administrative and policy actions are underway.
All major states have allotted funds required to implement this scheme from July 1, the sources added.
Under the new architecture, states share both cost and responsibility through a normative allocation framework, creating stronger incentives for effective implementation and preventing misuse.
The total estimated annual requirement of funds on wage, material, and administrative components is Rs 1,51,282 crore, including the state share. Of this, the estimated central share is Rs 95,692.31 crore.
This transition does not impose an undue financial burden on states, the officials said.
The funding structure is calibrated to state capacity, with a standard cost-sharing ratio of 60:40 between the Centre and states, enhanced support of 90:10 for the northeastern and Himalayan states, and 100 per cent central funding for Union Territories without legislatures.
States were already bearing a share of material and administrative costs under the earlier framework, and the move to predictable normative allocations further supports sound budgeting, they said.
Provisions for additional assistance to states during disasters and stronger oversight mechanisms also help reduce long-term losses arising from misappropriation, reinforcing fiscal sustainability alongside accountability.
Beneficiary workers will be given new smart job cards in place of job cards issued under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 2005.
The new job cards will include face recognition to ensure transparency and accountability, the sources said.
The officials also briefed the panel on the steps taken to implement the VB-G RAM G Act, nationwide. The government has further clarified that fresh works can also be opened during the transition phase if ongoing works are insufficient to meet labour demand.
The panel is headed by Congress MP Saptagiri Ulaka.