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MP CM Mohan Yadav Confident on 40% Funding for Revamped Rural Jobs Scheme

Madhya Pradesh Chief Minister Mohan Yadav has asserted the state government's financial capability to bear its 40% share for the newly implemented VB-G RAM G scheme. The scheme, which replaces the MGNREGA, follows a 60/40 funding ratio between the Centre and the state. Yadav addressed opposition criticism regarding the renaming, emphasizing the scheme's developmental vision and its potential to generate rural employment. State BJP chief Hemant Khandewal also countered opposition claims, clarifying that Gram Panchayats will decide up to 50% of the work under the new act.

Key Points: MP to Share 40% Cost for VB-G RAM G Scheme, Says CM Yadav

  • State confirms 40% share for new scheme
  • Replaces old MGNREGA with VB-G RAM G
  • Guarantees 125 days of wage employment
  • Aims for rural development and employment
3 min read

Madhya Pradesh capable to share 40 pc budget for 'G RAM G' scheme: CM Mohan Yadav

Madhya Pradesh CM Mohan Yadav announces state's capability to fund 40% of the new VB-G RAM G rural employment scheme, replacing MGNREGA.

Madhya Pradesh capable to share 40 pc budget for 'G RAM G' scheme: CM Mohan Yadav
"The Madhya Pradesh government is capable to contribute 40 per cent financial allocation. - CM Mohan Yadav"

Bhopal, Jan 7

Madhya Pradesh Chief Minister Mohan Yadav on Wednesday announced that the state government has implemented the 'VB-G RAM G' scheme introduced by the Bharatiya Janata Party-led NDA government following a heated debate in the Parliament earlier in December last year.

Chief Minister Yadav stated the Madhya Pradesh government is well capable to share the 40 per cent financial allocation to implement the scheme on ground. "The Centre has made a provision of 60/40 ratio for financial allocation under this scheme, and the Madhya Pradesh government is capable to contribute 40 per cent financial allocation," the CM said.

Addressing a press conference at state BJP headquarters in Bhopal, Chief Minister Yadav said that Madhya Pradesh is the second largest state in terms of area and also a rich agriculture area. "This scheme will provide employment to people and the development will take place, especially in rural area."

He stated that earlier there were many confusions especially on fund allocation between the Centre and the States, but Prime Minister Narendra Modi's government has made things very clear that the Centre and State will share 60/40 ratio fund allocation.

Responding to the Opposition's allegations on renaming the 'MGNAREGA' into the 'VB-G RAM G', the Chief Minister stated that BJP government has renamed the scheme with a vision of development. "Raising questions is the opposition's job and we are ready to welcome their positive suggestions to implement the scheme on ground in Madhya Pradesh. This is not the first time when this scheme was renamed," Yadav said.

Meanwhile, Madhya Pradesh BJP chief Hemant Kahndelwal alleged that the Opposition misleading the people with "incorrect" and "baseless" facts about the new Act, stating that 50 per cent work would be decided by the Grampanchayats.

"This new Act clearly mentions that up to 50 per cent work under the G RAM G scheme will be decided by the Grampanchayats, hence there should be no confusion in it. They (Congress) are trying to mislead the people but things are very clear and people understand it," Khandewal added.

Notably, after getting mandatory approval from the President, 'Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) Bill, 2025, that replaced age-old MGNREGA, has been implemented with a new rural employment policy.

The Act enhances the statutory wage employment guarantee to 125 days per financial year for rural households. It seeks to advance empowerment, inclusive growth, convergence of development initiatives and saturation-based delivery.

The leaders of the ruling BJP have maintained that the new scheme will strengthen income security for rural households, modernises governance and accountability, and links wage employment with the creation of durable and productive rural assets. With this Act, the government aims to lay the foundation for a prosperous and resilient rural India.

- IANS

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Reader Comments

P
Priya S
Renaming schemes seems to be a new trend. MGNREGA, NREGA, now VB-G RAM G... the name doesn't matter as much as the work on the ground does. Will the 125 days guarantee be enough? And will wages be paid on time? That's what we need to watch.
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Arjun K
Giving 50% decision-making power to Gram Panchayats is a positive step if done right. It should lead to more locally relevant projects. But panchayats need capacity building and transparency to handle this responsibility. Otherwise, it's just shifting the problem.
S
Sarah B
As someone who has studied rural development, the convergence of initiatives and focus on durable assets is the key part here. MGNREGA often created temporary work. If this new scheme truly builds lasting infrastructure, it could be a game-changer for rural India.
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Vikram M
The CM says there is no confusion, but the opposition says there is. The truth is usually somewhere in the middle. The government needs to run a massive awareness campaign in villages so that every eligible person knows their rights under this new 'G RAM G'.
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Karthik V
With respect, I have a criticism. Announcing capability is one thing, but where is the 40% share coming from? Will it mean cuts in other social sector budgets like health or education? Transparency in the state's financial planning is needed, not just announcements.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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