24 States, U.T.s set aside funds for new rural jobs scheme, Pg18

Key Highlights:

• 24 States and UTs have earmarked funds for the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, despite the Centre not yet notifying the allocation formula.
• States are required to bear 40% of the scheme's expenditure, with exceptions for northeastern and hilly States/UTs like Jammu & Kashmir.
• The Union Budget 2026-27 has allocated ₹95,652 crore as the Centre’s share for the scheme.
• Some states are using past MGNREGA expenditure as a baseline for their allocations under the new Act.

Detailed Insights:

• The Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025 aims to provide enhanced rural employment opportunities.
• The Act extends guaranteed employment from 100 to 125 days, increasing the financial burden on both the Centre and States.
• Section 4(5) of the Act mandates the Union government to determine State-wise allocations annually based on "objective parameters" to ensure equitable distribution of funds.
• States are using their past expenditure under MGNREGA as the baseline while also accounting for the additional 25 workdays promised under new Act.

Key Concepts Involved:

• MGNREGA: A flagship rural employment scheme guaranteeing 100 days of wage employment to rural households.
• Normative Allocation: The process of determining State-wise fund distribution based on pre-defined criteria.
• Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025: A rural employment programme extending guaranteed employment to 125 days.