At least 13 states, including Bihar and Madhya Pradesh
GS3Economy · S&T · Environment · Security· Employment & inclusive growth· Mains·
Why in news
At least 13 states, including Bihar and Madhya Pradesh, have raised concerns over the financial burden and funding patterns of the new Viksit Bharat-Guarantee for Rozgar and Aajeevika Mission (Gramin) (VB-G RAM G).
Background
The Union Rural Development Ministry shared details of the VB-G RAM G mission with the NCPRI. States like Bihar, Madhya Pradesh, and Jharkhand have specifically requested a reconsideration of the funding pattern due to inadequate resources.
Facts for Prelims
- BodyUnion Rural Development Ministry: The nodal ministry responsible for rural employment schemes.
- FactVB-G RAM G: A new rural employment program aimed at providing Rozgar (employment) and Aajeevika (livelihood).
- Fact60-day blackout period: A period during peak agricultural seasons where states are seeking wage and material bill clearances from the Centre.
For Mains
Q. Critically analyze the fiscal challenges faced by states in implementing centrally sponsored rural employment schemes and suggest measures to ensure equitable funding distribution.
Dimensions to cover in your answer
- Fiscal imbalance: High expenditure burden on states for centrally sponsored schemes without adequate upfront resource allocation.
- Liquidity crunch: Delays in wage and material bill clearances during peak agricultural seasons affecting rural labor mobility.
- Federal friction: Conflict between state-level resource constraints and central mandates for rural employment targets.
Keywords: Fiscal Federalism · Centrally Sponsored Schemes · Rural Livelihood · Liquidity Constraints · Inter-governmental Coordination
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