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Centre Releases Rs 95,692.31 Crore to States Ahead of VB‑GRAMG Rollout

The interim transfer guarantees wage continuity while signaling a shift to a Centre‑state cost‑sharing model that will require states to add budgeted contributions.

Overview

  • The Union Rural Development Ministry issued the Rs 95,692.31 crore interim allocation on Tuesday to bridge the move from MGNREGA to VB‑GRAMG and to keep work and wages flowing through the end of June.
  • Union minister Shivraj Singh Chouhan said there will be no interruption in employment or wage payments during the transition and that states should complete administrative steps ahead of the July 1 start date.
  • The scheme’s draft rules have not been fully finalised but the Centre has told states to finish 100% e‑KYC of beneficiaries, notify peak agricultural seasons, frame state rules, and carry out district-level capacity building.
  • Officials said 26 states have completed the required procedures while Jharkhand, Karnataka, Telangana and Mizoram have yet to finish formalities; West Bengal resumed local works, began beneficiary re‑verification and received an interim Rs 700 crore for June.
  • Draft provisions indicate VB‑GRAMG will be a centrally sponsored programme with a reported 60:40 Centre:state share (90:10 for special regions), a change that raises fiscal pressure on states and will be central to upcoming implementation and political disputes.