The Union Government has published draft rules for the Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (VB-G RAM G) Act to implement a renamed rural-employment guarantee scheme [1].
This shift in governance seeks to modernize how rural jobs are managed and funded. By linking state allocations to specific performance metrics and a standardized formula, the Centre aims to increase transparency and accountability in the delivery of employment guarantees.
Under the proposed rules, state funding will be allocated using the 16th Finance Commission formula and additional performance-based criteria [1, 2]. The government has earmarked Rs 95,000 crore for the scheme effective from April 1, 2024 [4]. Some projections suggest states will collectively see a net gain of approximately Rs 17,000 crore under the new framework [3].
To oversee the mission, the draft rules propose a National Level Steering Committee consisting of 16 members [1]. This group will include five representatives from the states to ensure coordinated implementation across different regions [1].
The government is currently seeking public and stakeholder feedback on these draft rules [1]. The window for submitting comments remains open until June 21, 2024 [1].
The VB-G RAM G Act represents a transition from previous rural employment models toward a system that emphasizes measurable outcomes. By utilizing the Finance Commission's established distribution methods, the Centre intends to balance the financial needs of various states, and incentivize efficiency in job creation [2].
“State funding will be allocated using the 16th Finance Commission formula and performance-based criteria.”
The transition to the VB-G RAM G framework signals a move toward 'performance-linked' federalism in India's social welfare spending. By tying funds to the 16th Finance Commission formula and specific metrics, the central government is shifting the burden of efficiency onto the states, potentially rewarding high-performing administrations while pressuring those with poor implementation records to reform their rural employment delivery systems.
