VB-G RAM G not in Himachal's interest, says CM Sukhu over 10% cost burden
Synopsis
Himachal Pradesh CM Sukhvinder Sukhu has formally objected to VB-G RAM G — the Centre's replacement for MNREGA — arguing that requiring states to bear 10% of costs breaks from the fully funded model that made MNREGA viable for fiscally constrained hill states. The pushback from Shimla could be an early signal of wider state-level resistance to the new rural employment architecture.
Key Takeaways
Himachal Pradesh CM Sukhvinder Sukhu declared VB-G RAM G is not in the state's interest on 8 July 2025 .
Under MNREGA , the Centre funded 100% of costs; under VB-G RAM G , states must bear 10% of expenditure.
The state will spend ₹30 crore to complete Panchayat Ghars across Himachal Pradesh.
310 Self-Help Groups have received credit assistance worth ₹65.56 lakh ; showrooms operational in Dharamsala , with new ones planned at Pandoh and Kullu .
All flagship rural schemes to be integrated into the Chief Minister's Dashboard for online monitoring.
Himachal Pradesh Chief Minister Sukhvinder Sukhu on Wednesday, 8 July declared that the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin), commonly known as VB-G RAM G, is not in the interest of the state, citing a structural funding shift that places a fresh financial burden on Himachal Pradesh.
The Core Objection: Funding Shift from Centre to State
Sukhu pointed out that under the predecessor scheme, the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), the Centre bore 100 per cent of the funding. Under VB-G RAM G, the state government is now required to contribute 10 per cent of expenditure — a change the chief minister described as contrary to Himachal's fiscal interests. This is a significant shift for a hill state that already operates under constrained revenues and depends heavily on central transfers for rural welfare delivery.
Rural Development Push: Panchayat Ghars and Staffing
Presiding over a departmental review meeting in Shimla, Sukhu said the state government is actively working to strengthen the Rural Development and Panchayati Raj Department, recognising its role in holistic rural development. He stated that vacant posts in the department are being filled on priority to improve administrative efficiency, with further recruitment planned in the coming days.
The chief minister announced that the state will allocate ₹30 crore to complete the construction of Panchayat Ghars across Himachal Pradesh. He also directed that additional funds be released to finish the District Panchayat Resource Centre in Una.
Empowering Rural Women Through Self-Help Groups
Sukhu highlighted the government's commitment to rural women's economic empowerment, noting that financial assistance is being extended to Self-Help Groups (SHGs). According to officials, 310 SHGs have already received credit assistance totalling ₹65.56 lakh.
To expand market access for SHG products, a Himachal Hat is under construction in Shimla, with showrooms also being established at Pandoh and Kullu. A similar outlet is already operational in Dharamsala. Food vans have been provided to SHGs to promote their enterprises, with more vehicles to be distributed in future.
Monitoring and Accountability
Sukhu directed the Secretary (Rural Development and Panchayati Raj) to integrate all flagship departmental schemes into the Chief Minister's Dashboard for real-time online monitoring. He also instructed officers to expedite the implementation of ongoing schemes so that benefits reach intended beneficiaries without delay.
As Himachal Pradesh formally registers its objection to VB-G RAM G's cost-sharing structure, the state's stance could prompt a broader debate among other state governments over the Centre's shift away from fully funded rural employment guarantees.
Point of View
And a 10% co-funding mandate — however modest it sounds nationally — can materially squeeze a state that already struggles to pay salaries on time. The deeper issue is structural: replacing a 100%-centrally funded entitlement with a cost-sharing model effectively transfers fiscal risk downward without a corresponding transfer of revenue capacity. If other small and hill states echo Shimla's position, the Centre may face pressure to revisit the funding formula before VB-G RAM G reaches full rollout.
NationPress
8 Jul 2026
Frequently Asked Questions
What is VB-G RAM G and why is Himachal Pradesh objecting to it?
VB-G RAM G — Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) — is the Centre's new rural employment and livelihood scheme, replacing MNREGA. Himachal Pradesh CM Sukhvinder Sukhu has objected because, unlike MNREGA which was 100% centrally funded, VB-G RAM G requires states to bear 10% of expenditure, which he says is not in the state's interest.
How does VB-G RAM G differ from MNREGA on funding?
Under MNREGA, the Central government provided 100% of the funding, leaving no financial burden on state governments. Under VB-G RAM G, states are required to contribute 10% of the total expenditure, a shift that fiscally constrained states like Himachal Pradesh argue is unviable.
What rural development announcements did CM Sukhu make on 8 July?
Sukhu announced ₹30 crore for completing Panchayat Ghars across the state, directed additional funds for the District Panchayat Resource Centre in Una, and said all flagship schemes would be integrated into the Chief Minister's Dashboard for online monitoring.
How is Himachal Pradesh supporting Self-Help Groups?
The state has extended credit assistance of ₹65.56 lakh to 310 SHGs. A Himachal Hat marketplace is under construction in Shimla, showrooms are being set up at Pandoh and Kullu, and food vans have been distributed to SHGs to promote their enterprises.
What happens next after Himachal Pradesh's objection to VB-G RAM G?
The state's formal objection puts the funding structure of VB-G RAM G under scrutiny. If other hill or small states raise similar concerns, the Centre may face pressure to revise the cost-sharing formula before the scheme is fully rolled out nationwide.
