Budget 2026: Viksit Bharat-G RAM G Gets Rs 95,600 Crore, States Face Higher Costs

• Union Budget 2026-27 allocates Rs 95,600 crore to the new Viksit Bharat-G RAM G rural employment scheme, an increase of Rs 10,000 crore from MGNREGA's previous allocation.
• The new scheme shifts the cost-sharing structure, with the Centre funding 60% and states now contributing 40%, a significant change from MGNREGA's model.
• This revised funding model applies to most states, except for northeastern and Himalayan states, which retain a 90:10 Centre-state split.
• States anticipate additional annual liabilities running into thousands of crores due to the increased financial burden.
• Concerns arise that the new framework, unlike MGNREGA's rights-based guarantee, may lead to tighter caps on work generation, especially in fiscally constrained states.

Why It Matters: Viksit Bharat-G RAM G receives increased central funding, but states now bear a significantly larger financial burden.