CPR Insights | The Possible Fiscal Impact of VB G RAM G on States Partha Mukhopadhyay, Anmol Kumari December 29, 2025Figure 1: Impact of Making States Pay for MGNREGS ExpenditureSource: For MGREGS https://mnregaweb4.nic.in/netnrega/Citizen_html/financialstatement.aspx?lflag=eng&fin_year=2022-2023&source=national&labels=labels&Digest=kODLAkQv8M9FT6WbXb7zhA and RBI State Finances https://rbi.org.in/Scripts/AnnualPublications.aspx?head=State%20Finances%20:%20A%20Study%20of%20Budgets and Census 2011One of the differences between MGNREGS and VB G RAM G is that the states will now need to pay a portion of the VB G RAM G bill. For about half the states using both the revenue metric (16) and expenditure metric (15), this share would have been below 2% in 2022-23. Nagaland, Meghalaya, Manipur, Tripura, and Mizoram (Jammu and Kashmir is the sixth state by the revenue metric). For this, we compare it to the amount of rural development expenditure being undertaken by the states. Table 1 groups the states into four – those with high and low shares of MGNREGS spending to total revenue, vis-à-vis high and low shares of rural development spending to total revenue.

Source: Indian Express December 29, 2025 10:05 UTC