New scheme to cost more for poor states
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Moneycontrol19-12-2025, 11:40

New Rural Jobs Scheme Strains Bihar, Chhattisgarh, Jharkhand with 60:40 Cost Split

  • Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) approved, raising work guarantee to 125 days.
  • New 60:40 Centre-state funding formula replaces MGNREGA's demand-driven design.
  • Bihar, Chhattisgarh, and Jharkhand face significant fiscal strain due to the new cost-sharing framework.
  • Bihar needs Rs 2,576 crore (0.23% of GSDP), impacting its already high fiscal deficit of 9.2%.
  • Fiscally weaker states with lower tax revenues will bear a disproportionately higher burden compared to richer states.

Why It Matters: New rural jobs scheme's 60:40 cost split disproportionately burdens fiscally weaker states.

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