By-Dr. Vigneswaran V.S.,
Assistant Professor, Department of Environmental science and Engineering, SRM University – AP
The 2026-27 union finance budget saw a 9.44% increase in budget outlay, comparted to previous years ₹2,33,210 crore. Following the same trend, the allocation for rural employment scheme increased by 43% when compared to previous years. A budget allotment of ₹30,000 crore and ₹95,692.31 crore was made to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB–G RAM G) Act, respectively. With the VB–G RAM G act yet to be notified and the state government given six months span to roll out their version, the MGNREGS will continue during this period. However, with the expenditure expected to be ₹15,000 crore in line with last year trends and current dues accounting to about ₹15,000 crore makes the allocation to MGNREGS in current budget irrelevant. But still ₹95,692.31 crore allocated to VB–G RAM G act in current budget is about 9% higher than the revised estimate for the MGNREGA in 2025-26. Nevertheless, the government cannot achieve its target of increasing the total employment days to 125 (instead of 100 days promised under MGNREGA) with the allocated budget. Despite 40% of the budget coming from state budget.
Considering ₹375a day (minimum wagesrecommendedcentral government Committee for MGNREGA workers) as wages for an employee under VB–G RAM G act, providing employment for 8.65 crore active job card holders will necessitate the union government to make an allotment of ₹2,43,281 croreto meets its share of 60%. However, the union government has allocated only about 39% of the total amount required to meet its target. This reduction in allotment either shows the union government is not planning to achieve its own target or believes that the revision in its allocation can be made once the state government allocates its share after notification of the act. But either way, the union government has failed to gain the confidence of state government, especially the states ruled by parties which does not support the union government. With the state government already made to bear 40% of total wages paid to employees under VB–G RAM G act, failure of the union government to revise their allocation will lead to unwanted financial constrain to the states. Thus, the present scenario clearly depicts that the finance minister has failed to walk the talk, thereby ensuring that the active card holders in rural India will not get 125 working days under the VB–G RAM G act in the year 2026-27.Meanwhile, with the new act mandating 60 days pause period to ensure agricultural labour availability during peak harvesting and sowing season, ensures the bargaining power of rural employee is at stake during this span.
This, in turn may propel urban migration of rural population in search of better employment. Hence, in the upcoming year the union government must makes itsrural employment allocation under the VB–G RAM G act upfront, which is good enough to provide wages for 125 working days to rural employees, thereby boosting rural economy and indirectly pushing all the state government to do the same.
