Scheme likely rollout in April 2026, states will get 6 months: Chouhan, Pg8

Key Highlights:

• The central government aims to launch a new rural job guarantee program on April 1, 2026, replacing the MNREGS.
• States will have six months to implement the new scheme.
• Under the proposed bill, states will bear 40% of the financial burden.
• NITI Aayog will devise a formula to determine state-wise 'normative allocation'.

Detailed Insights:

• The existing MNREGS arrangement sees the Centre covering 100% of labor costs and 75% of material costs.
• The shift to states bearing 40% of the financial burden is justified by increased revenue collection and GST sharing.
• The new scheme will focus on work that states would undertake anyway for village development.
• NITI Aayog will establish "objective parameters" for state-wise allocation under the scheme.

Key Concepts Involved:

• MNREGS: A flagship rural employment scheme guaranteeing wage employment to rural households.
• GST: A value-added tax levied on most goods and services sold for domestic consumption.
• NITI Aayog: The premier policy think tank of the Government of India, providing directional and policy inputs.