Budget leaves states in the dark on MGNREGA–VB G RamG: SDPI

The Social Democratic Party of India (SDPI) has strongly criticised the Union Budget for creating confusion around MGNREGA and the newly introduced VB G Ram G scheme, warning that both state governments and rural workers are being left uncertain at a crucial time.

SDPI said that while the Centre has announced big figures, it has failed to explain how pending dues will be cleared, how the transition from MGNREGA to VB G RAM G will happen, and how much money states will actually have to contribute. With state budgets due this month, the lack of clarity is deeply worrying.

The ₹30,000 crore allocation for MGNREGA is unlikely to generate new employment. A large part of this amount will be used to clear old unpaid wages and bills, leaving little for fresh work. This means rural workers may once again be denied timely jobs and wages.

SDPI pointed out that the Budget mentions Rs 95,000 crore, but gives no clarity on the cost-sharing formula or the normative allocation for states. If states are forced to bear a major share of the cost for a 125-day work guarantee, many may simply not have the financial capacity to do so.

“The government talks about guarantees, but without clear funding and rules, these guarantees remain only on paper,” SDPI said. “If states cannot arrange funds on time, workers will suffer through delayed work and delayed payments.”

SDPI also criticised the government for failing to explain how the transition from MGNREGA to VB G RamG will take place. No clear guidelines, formats or planning framework have been shared so far, creating confusion on the ground.

The party further noted that neither MGNREGA nor VB G RamG was clearly mentioned in the Budget speech, raising serious questions about whether the policy has been properly thought through.

SDPI demanded immediate transparency from the Centre on fund allocations, state liabilities, cost-sharing norms and implementation guidelines, warning that continued ambiguity will weaken the right to work and deepen rural distress.

Mohammad Shafi
National Vice President