Assam to Get Higher Central Funding Under New Rural Employment Law

Assam is set to receive significantly higher financial support from the Centre under the newly enacted Viksit Bharat Guarantee for Rozgar and Ajeevika Mission (Gramin) Act, 2025, with the Union government extending a 90:10 funding pattern to the state.

The announcement was made by Union Minister of State for External Affairs and Textiles Pabitra Margherita while addressing a press conference at the Jorhat Circuit House on Thursday.

Calling the passage of the new law a historic moment, Margherita said the legislation marks a major shift in India’s approach to rural employment and livelihood generation, in line with the national goal of building a Viksit Bharat by 2047.

He said the new Act moves beyond relief-based schemes and focuses on productivity, long-term livelihood creation and strengthening villages as centres of economic growth. According to the minister, this change reflects Prime Minister Narendra Modi’s vision of ensuring the dignity of labour and sustainable development rather than short-term assistance.

Margherita also thanked Union Rural Development Minister Shivraj Singh Chouhan for his role in shaping the law, stating that the new framework is a result of lessons learned over more than two decades of implementing rural employment programmes.

Referring to the earlier MGNREGA scheme, the minister said it played an important role in providing relief in its early years, but over time, several issues emerged. These included fake job cards, ghost beneficiaries, delays in wage payments and misuse of funds, which made reforms unavoidable.

He said rural India has changed significantly since 2005, with improved connectivity, digital access, financial inclusion and reduced poverty levels. In this changed scenario, he added, a productivity-focused approach is necessary to meet present-day needs.

Under the new law, the guaranteed number of workdays per rural household has been increased from 100 to 125 days. The Act also takes into account agricultural requirements by introducing a mandatory break in public works during peak farming seasons, so that labour remains available for agricultural activities.

To address long-standing complaints of delayed payments, the Act mandates weekly wage disbursement, with payments not exceeding a fortnight. Automatic compensation has also been introduced in case of delays. Margherita said enhanced digital monitoring and technology-driven checks will help prevent misuse and ensure transparency.

Highlighting the funding aspect, the minister said the Centre’s decision to extend a 90:10 funding pattern to Assam and other North-Eastern and Himalayan states acknowledges their geographical and developmental challenges. He said this move underlines the Centre’s commitment to inclusive growth and cooperative federalism.

The new framework also aims to ensure that public works lead to long-lasting benefits. Projects will now be planned around four key areas: water security, rural infrastructure, livelihood-linked assets and climate resilience, to avoid scattered and short-term works.

Concluding his address, Margherita said the VB-G RAM-G Act, 2025, represents a decisive move towards meaningful rural development, ensuring villages play a central role in India’s journey towards becoming a developed nation by 2047.

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