NEW DELHI: Even as the Centre prepares to roll out the new rural employment scheme, VB GRAM-G from July 1, it has been learnt that it may allocate an additional Rs 15,000 crore to MGNREGA,raising fresh questions over the future of the existing scheme, which is to be repealed under the new framework.
The development comes even as the government published draft rules for the VB-GRAM-G Act on Saturday for public consultation. The draft proposes that Central allocations to states under the new scheme will be determined normatively using the horizontal devolution formula recommended by the 16th Finance Commission.
According to sources, the additional allocation could be released immediately to the two-decade-old UPA-era MGNREGA. However, there is still no clarity on whether the existing scheme will continue during the transition phase.
The development comes amid Opposition demands for a smooth shift from MGNREGA to GRAM-G, with the government earlier assuring a six-month transition period to avoid disruption in rural employment and wage payments.
Opposition leaders have also maintained that MGNREGA cannot be discontinued abruptly, given its role in providing rural livelihood support.
In the Union Budget, the Centre allocated Rs 95,692.31 crore for GRAM-G and Rs 30,000 crore for MGNREGA to clear pending liabilities. “Now the government is planning to pump in nearly 50% more than the original budget allocation to MGNREGA,” a source said.
At a recent meeting of the Parliamentary Standing Committee on Rural Development and Panchayati Raj, ministry officials are learnt to have informed members that 25 states have already agreed to implement the GRAM-G programme and that administrative and policy preparations are underway.
Opposition states okay with 60:40 fund
While Opposition criticised the 60:40 Centre-state funding model as burdensome, sources said most Opposition-ruled states, except Jharkhand, have come on board. “Telangana, Himachal, Kerala accepted it. Karnataka agreed under protest,” a source said. Previous DMK government, too, had consented