Maharashtra may see 6-fold jump in job guarantee scheme spending after revamped VB-G RAM G Bill
The new Viksit Bharat - Guarantee for Rozgar and Ajeevika Mission (Gramin) or VBGRAMG Bill, 2025, is likely to strain state finances, government officials said.
Once the legislation for the new national rural job guarantee scheme is passed by Parliament, Maharashtra’s expenditure on it will likely see a six-fold jump to Rs 6,000 crore in the first full year of implementation from just about Rs 900 crore now.
The new Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin) or VBGRAMG Bill, 2025, is likely to strain state finances, government officials said. Some of the populist poll announcements such as the CM Majhi Ladki Bahin have already burdened the exchequer with additional spending of Rs 36,000 crore in a year.
“As per the present content of the bill, while the total estimated requirement stands at Rs 1,51,282 crore, we (Maharashtra) expect to get a budget of roughly 10 per cent of that which comes to around Rs 15000 crore and with 40 percent share to be borne by the state, it means we will have to shell out at least Rs 6,000 crore if we are to utilise the rest 60 per cent. This would mean we will see over 500 per cent jump in state’s expenditure on MGNREGA which is expected to be around Rs 900 crore for the current financial year,” the official said.
The official, however, said the increase in the number of days from 100 to 125 and addition of works such as road and bridge construction in the scope of works in the new bill could be a boon for the state. “There are schemes for road construction under the Rural Development department for which the state pays a total 100 percent. Now, that can become part of the works to be undertaken under the new bill, if passed. This could in turn reduce the state’s burden,” he said.
Maharashtra Chief Minister Devendra Fadnavis acknowledges that financial resources are finite. “We do not have an overflowing treasury, and I will not claim that we do. But among the country’s large states, Maharashtra even today qualifies on all parameters of a stable and strong economy,” the Chief Minister said while replying to debates in the Legislative Assembly last week. He, however, along with deputy CM and Finance minister Ajit Pawar maintained that the state continues to meet all key indicators of economic stability and remains among the strongest state economies in the country.
As per the data from the state’s Employment Guarantee Scheme (EGS) department, the state has been steadily increasing its share on the works under MGNREGA in the last five years as the total expenditure too has witnessed high growth.
In 2020-21, the total expenditure was Rs 2020.96 crore, which was grown to Rs 2422.75 crore (2021-22), Rs 3024.23 crore (2022-23), Rs 4460.83 crore (2023-24) and Rs 5972.23 crore in the fiscal of 2024-25. “We expect that the total expenditure for the ongoing fiscal will reach to Rs 9000 crore,” said a senior official overlooking the implementation of the MGNREGA in Maharashtra. In the ongoing fiscal, the total expenditure already stands at Rs 5207.08 crore.
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According to the provisions of the proposed bill, the Centre will foot only 60 per cent of the wage burden, with the balance 40 per cent required to be managed by the state. As of now, the entire wage burden under the scheme is taken care of by the Centre, while the material costs are shared by the Centre and states in the ratio of 75:25.
In the last five years. the state spent relatively smaller amounts — Rs 200 crore (2020-21), Rs 240 crore (2021-22), Rs 300 crore (2022-23), Rs 446 crore (2023-24) and Rs 597 crore (2024-25). It did not matter much although the spending rose every year. Given the targeted expenditure of Rs 9,000 crore in the current fiscal, the state share for the ongoing fiscal is estimated to be under Rs 1,000 crore.
Alok Deshpande is a Special Correspondent with The Indian Express' Mumbai bureau, recognized for his focused and authoritative reporting on governance, politics, and the socio-economic dynamics of Maharashtra's hinterlands. His unique academic background in Geology and early work in the water sector provides a specialized layer of Expertise to his reporting on resource and environmental issues.
Expertise
Current Role: Special Correspondent, The Indian Express, Mumbai.
Core Authority: Alok provides detailed coverage of Maharashtra politics and governance, with a particular emphasis on how policies and power struggles affect the rural and semi-urban areas (the 'hinterlands').
Key Coverage Areas: His reports frequently focus on high-stakes administrative and political topics, including:
State Assembly Proceedings: In-depth reporting on the Legislative Assembly, covering ministerial statements, legislative debates, and inter-party conflict within the ruling Mahayuti alliance.
Policy & Finance: Coverage of state finances, including supplementary budget demands, fiscal deficits, and major government schemes (e.g., Jal Jeevan Mission, Ladki Bahin Yojana).
Rural and Social Issues: Reports on critical health issues (e.g., child deaths in districts), human-animal conflict (leopard attacks, stray dogs), and agrarian concerns (e.g., farmer suicides).
Local and Urban Governance: Covers major announcements regarding urban development (e.g., BMC's OC amnesty scheme, pagdi system push) and local body elections, including political defections and alliance splits.
Unique Credentials & Trustworthiness
Academic Specialization: Holds a Post-graduate degree in Geology. This background gives him a foundational understanding of natural resources, which directly informs his reporting on environment, water, and infrastructure projects.
Early Professional Experience: His shift to journalism came after working with an NGO focused on the water sector. This practical experience strengthens his Expertise in critical areas like water management and rural development, as evidenced by his reporting on the Jal Jeevan Mission.
Journalism Training: An alumnus of the prestigious Asian College of Journalism (ACJ), Chennai, confirming his formal training and commitment to rigorous journalistic standards.
Alok Deshpande's rare combination of scientific education, non-profit sector experience, and deep political reporting makes him a highly trusted and authoritative voice on the governance and ground realities of Maharashtra.
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