Workers’ group flags opacity and funding gaps in Union budget on rural employment

By A Representative

A workers’ collective has criticised the Union Budget 2026–27 for what it described as a lack of transparency and inadequate funding related to the proposed VB-GRAMG scheme and the existing Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). In a statement issued on Saturday, the NREGA Sangharsh Morcha said the Budget speech and accompanying documents made no reference to either MGNREGA or VB-GRAMG, creating uncertainty for state governments, frontline officials and rural workers about the future of employment guarantees.

The organisation said the Centre has not clarified when VB-GRAMG will be notified, how the transition from MGNREGA will be carried out, or what state-wise allocations are likely to be. It argued that this lack of clarity has placed state governments in a difficult position as they are required to make financial and administrative plans without adequate information, while frontline functionaries and rural workers remain unsure about the continuity of employment during the coming months.

Questioning the government’s promise of providing 125 days of employment under VB-GRAMG, the Morcha said the current budgetary allocation falls far short of what would be required to meet this commitment. Based on its calculations, generating 125 days of work even for currently active households would require a total expenditure of about ₹3.84 lakh crore, with the Centre’s share amounting to roughly ₹2.3 lakh crore. The Budget allocation of ₹95,692 crore, it said, is only about 42 per cent of this minimum requirement, which could restrict employment to an average of around 52 days unless states significantly increase their own spending.

The statement also raised concerns about the allocation for MGNREGA, which has been set at ₹30,000 crore for 2026–27. According to the Morcha, a large portion of this amount is likely to be absorbed in clearing pending wage and material dues from previous years, leaving limited funds for fresh employment generation. It warned that this could particularly affect the summer months, when demand for work under MGNREGA is traditionally at its peak.

Describing the Budget as indicative of a disregard for rural workers, the NREGA Sangharsh Morcha said the financial provisions expose what it termed the hollowness of the VB-GRAMG proposal. The organisation reiterated its demand for the repeal of the new scheme and called for the reinstatement and strengthening of MGNREGA to ensure sustained employment security for rural households.

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