The Lok Sabha on December 18 passed the G RAM G Bill amid a showdown with the Opposition. The new Bill replaces MGNREGA
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Moneycontrol18-12-2025, 14:45

Centre Caps Rural Funds: Southern States' High Spending Triggers MGNREGA Revamp

  • Central government revamps MGNREGA to Viksit Bharat - G-RAM-G Bill, 2025, shifting from 'demand-driven' to 'supply-driven'.
  • New scheme fixes annual Central allocation; states bear extra costs, changing 100% wage/75% material funding to 60:40 Centre-State share.
  • Official cites southern states like Tamil Nadu, Kerala, Karnataka for exceeding spending estimates, receiving higher allocations despite lower populations.
  • FY25 data shows Tamil Nadu received highest MGNREGA allocation (Rs 9,843 crore), followed by UP (Rs 9,147 crore) and Andhra Pradesh (Rs 7,315 crore).
  • NREGA Sangharsh Morcha criticizes the changes, warning of financial strain on states and potential for reduced employment.

Why It Matters: Centre revamps MGNREGA to control spending, shifting burden to states, sparking criticism.

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