Telangana to challenge Centre's VB-G RAM G scheme in Supreme Court

The Telangana state cabinet on Thursday decided to challenge the Central government's new Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) (VB-G RAM G) scheme in the Supreme Court. Meeting at the secretariat in Hyderabad, the cabinet agreed to implement the scheme starting July 1 to prevent any disruption in employment for rural workers, despite holding strong reservations against its provisions.

The cabinet meeting, chaired by Chief Minister A Revanth Reddy, approved the implementation of the law while criticizing the Centre for ignoring the state's prior objections and recommendations. In the January assembly session, the Telangana government had passed a resolution against the scheme, which was subsequently ignored by the Central government.

Revenue Minister Ponguleti Srinivas Reddy briefed the media alongside ministers Seethakka and A Laxman Kumar. He stated that the cabinet elaborately discussed a report by a ministerial sub-committee, led by Irrigation Minister N Uttam Kumar Reddy, and decided to pursue a legal course.

To ensure that rural labourers do not lose work opportunities, the cabinet approved issuing a notification to bring the new law into force from July 1. Minister Srinivas Reddy noted that the cabinet had enquired about other states' responses and found that all other states had also decided to implement the law due to unavoidable circumstances.

Telangana’s primary objection to the VB-G RAM G scheme is its 60:40 funding formula. Under this rule, states must bear 40 percent of the scheme's expenditure. The state government estimates its annual share will be around Rs 2,500 crore. Under the previous Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) programme, the Centre fully funded the scheme.

Additionally, the state cabinet strongly opposed a provision that mandates a 60-day break for beneficiaries. Ministers argued that this break would severely impact poor rural households and agricultural labourers who depend on employment guarantee works. The ministerial committee also expressed concern that the new framework would penalise better-performing states while rewarding poorer performers.